Bybit to Cease UK Operations Amid Upcoming FCA Crypto Regulations
Summary:
Bybit, a Dubai-based cryptocurrency exchange, intends to halt its services in the UK from October 1, 2023, in response to upcoming regulations from the UK's Financial Conduct Authority (FCA). From October 8, changes will impact existing customers as new deposits, contracts, and position adjustments will be suspended. The move is an act of proactive compliance with the FCA's rules that require crypto businesses to adhere to transparent and fair marketing practices.
In a move driven by the impending regulations from the Financial Conduct Authority (FCA) of the United Kingdom, Bybit, the cryptocurrency exchange based in Dubai, has revealed their plans to halt services for UK-based clients. The disclosure was made on September 22, with the suspension of services set to commence October 1, starting with a prohibition on new account registrations. Subsequently, Bybit will also curb new deposits, the establishment of new contracts and modifications to existing positions for current users, beginning October 8. The exchange emphasized its proactive compliance with the FCA's new regulations as the rationale behind their decision.
To adhere to new regulatory modifications from UK authorities, Bybit will cease to provide its cryptocurrency services within the country. From October 1, 2023, registrations for new accounts will be suspended. Existing users are urged to manage their stakes before January 8, 2024.
Bybit's cessation of services corresponds with the FCA's deadline for crypto businesses engaging with UK users to ensure that their marketing tactics adhere to specific rules promoting transparency and fairness. These rules were first introduced by the FCA in June, with a second warning issued on September 21 concerning the October 8 deadline, and potential criminal charges for non-compliance.
In light of the service suspension, Bybit stated it would allow the company to allocate resources and efforts to better comply with future regulations set by UK authorities. Although the FCA indicated that some businesses might have until January 2024 to ensure compliance with marketing regulations, prior approval from the authority would be necessary.
In May, due to “recent regulatory development,” Bybit announced similar plans to wind down its operations in Canada. Despite these setbacks, the company has ventured into new markets, with Kazakhstan being a notable example, where it secured preliminary approval to function as a crypto custody service provider in May.
Published At
9/22/2023 3:29:11 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.