Bybit, one of the largest crypto derivatives exchanges, finally decides to leave the UK market at the end of 2023
In the second quarter of 2023, the UK Financial Conduct Authority introduced draconian regulations for companies' marketing and communications strategies related to cryptocurrencies. A major derivatives exchange has become the latest victim of increased regulatory scrutiny.
Bybit 'pauses' its UK services due to new FCA rules
Bybit, a top-tier cryptocurrency trading platform, announces that it will cease operations in the United Kingdom due to increased regulatory pressure. Starting October 1, 2023 at 8:00 am UTC, Bybit will no longer accept account opening requests from UK customers, according to the official team. statement says.
Active UK Bybit users will no longer be able to deposit funds, open contracts or initiate other trades from October 8, 2023. Position closing and asset withdrawals will be available during the transition period.
On January 8, 2024, all open positions will be forcibly liquidated; Users will only be able to withdraw cleared funds. Therefore, Bybit encourages all UK customers to properly manage their funds on the platform before the deadline arrives:
Bybit has decided to proactively adopt regulation and suspend our services in this market. The suspension will allow the company to focus its efforts and resources to be able to better comply with the regulations outlined by the UK authorities in the future.
The Bybit team explains this decision by implementing the FCA Policy Statement June 2023 (PS23/6). Regulations for the Financial Promotion of Cryptoassets. The new document imposed stricter advertising compliance standards for cryptocurrency companies.
It is worth noting that a week ago, Bybit CEO Ben Zhou insisted that the company was exploring all opportunities to maintain its operations in the UK.
Crypto platforms withdraw from UK markets
ByBit representatives repeatedly emphasized that leaving the country was not part of Bybit's promotion, marketing and adoption strategy for the coming years.
As previously covered by U.Today, UK guard dogs They will fully regulate the cryptocurrency segment by 2024. As such, regulators are introducing more and more restrictions for cryptocurrency companies. Previously, PayPal said it will stop offering cryptocurrency services in the United Kingdom.
At the same time, some cryptocurrency heavyweights plan to remain in the changing context. In July 2023, Onda Inc. applied for a crypto license to start operating in the UK and Ireland.
