Cryptocurrency trading platform Bybit has declared its decision to temporarily cease its operations in the United Kingdom. This move comes in response to newly instituted regulations put forth by the Financial Conduct Authority (FCA), the leading financial regulatory body in the U.K. Bybit articulates that this cessation will enable the firm to realign its operational strategy to be in full compliance with the stipulated guidelines issued by the U.K. regulatory authorities.
Bybit Suspends U.K. Operations
On a recent Friday, Bybit disclosed its intent to halt its services within the United Kingdom, pursuant to new regulations concerning the marketing and communications activities of crypto-related businesses. These regulations have been formalized in the Financial Conduct Authority’s Policy Statement PS23/6, entitled “Financial Promotion Rules for Cryptoassets,” which was published in June.
In their official communication, Bybit underscored its commitment to adhering to all pertinent regulations within the U.K. marketplace. The company elaborated:
Bybit has consciously elected to adhere to the new regulatory framework by temporarily suspending its services in the U.K. This period of inactivity will enable us to concentrate our resources and capabilities to ensure future compliance with the regulations delineated by the U.K. governmental authorities.
Beginning October 1, Bybit will discontinue the registration of new accounts by U.K. residents or nationals. Starting October 8, pre-existing users from the U.K. will not be permitted to make additional deposits, engage in new contracts, or augment any existing positions across all available products and services. However, these users may still liquidate or decrease their current positions and retrieve their funds, as stated by the trading platform.
Furthermore, Bybit advised U.K. customers impacted by these new directives to conclude their trading positions no later than 8 a.m. UTC on January 8, 2024. Beyond this specific deadline, any remaining open positions will be subjected to forced liquidation, with the liquidated assets being made accessible for withdrawal, according to the platform’s guidelines.
We welcome your thoughts on Bybit’s decision to temporarily discontinue its services in the U.K. to abide by new regulatory mandates. Please share your opinions in the comments section below.
Frequently Asked Questions (FAQs) about Bybit suspension U.K. regulations
Why is Bybit suspending its services in the U.K.?
Bybit is suspending its services in the U.K. to comply with new regulations set by the Financial Conduct Authority (FCA), which govern marketing and communications for crypto businesses. The company is proactively embracing these regulations to ensure full compliance with U.K. laws.
What are the specific regulatory changes prompting this suspension?
The regulatory changes are outlined in Policy Statement PS23/6, titled “Financial promotion rules for cryptoassets,” published by the FCA in June. These rules focus