Dubai-based cryptocurrency exchange Bybit has announced the suspension of its services in the UK in response to pending regulations from the country’s Financial Conduct Authority (FCA).
On 22nd of September Bybit announced that it would begin suspending its services to UK residents and no longer allowing new accounts to be opened from October 1st. This measure will be followed by the suspension of new deposits, new contracts and position changes for existing users on October 8th.
“In light of the introduction of new rules for marketing and communications by cryptocurrency companies by the UK Financial Conduct Authority (…), Bybit has taken the decision to proactively adopt regulation and discontinue our services in this market.” the company said.
Due to recent regulatory changes in the UK, Bybit will be discontinuing its services in the UK. Applications for new accounts will stop starting October 1, 2023 at 8:00 a.m. UTC. Existing UK users please manage your positions by January 8, 2024 at 8:00 a.m. UTC.
The completion date of Bybit’s services coincides with the deadline set by the FCA for crypto asset firms marketing to UK users to comply with certain rules aimed at providing “clear, fair and non-misleading” marketing arrangements . The FCA first announced the rules in June and issued a further warning on September 21, reminding firms of the October 8 deadline and the risk of criminal charges.
According to Bybit, The suspension of services “will allow the company to focus its efforts and resources to better comply with the regulations specified by the UK authorities in the future”.. The FCA suggested that some companies could have until January 2024 to comply with marketing rules, but would need prior approval from the regulator to do so.
Bybit announced a similar suspension of its services in Canada in May, citing “recent regulatory developments.” However, the company has been expanding into new markets, including Kazakhstan, where it received in-principle approval to operate as a crypto custody service provider in May.