The Bybit exchange has just confirmed that it’s going ahead with its suspension of services in the UK market ahead of new Financial Conduct Authority crypto rules set to be implemented next month.
The new regulations, which will mean a cooling-off period for first-time investors, are being introduced with the aim of making crypto marketing more transparent.
The confirmation comes after Bybit CEO Ben Zhou said that the FCA rule change meant its exit from the UK was likely. Bybit had last week said that they were “in talks with the regulator to find the best solution moving forward”.
But in a statement today, the Dubai-based Bybit have now said: “In light of the UK Financial Conduct Authority’s introduction of new rules regarding marketing and communications by crypto businesses as outlined in the June 2023 Policy Statement (PS23/6) entitled ‘Financial Promotion Rules for Crypto assets,’ Bybit has made a choice to embrace the regulation proactively and pause our services in this market.
“The suspension will allow the company to focus its efforts and resources being able to best meet the regulations outlined by the UK authorities in the future.”
From 1 October, Bybit say they will now no longer accept account applications from UK residents, while from 8 October, its UK base will “no longer be able to make any new deposits, create new contracts, or increase any of their existing positions for all products and services. They can, however, reduce and close their positions, and withdraw their funds from our platform”.
Bybit add: “As crypto adoption continues to grow globally, it is Bybit’s mission to deliver next level trading experiences to all crypto believers with the necessary guardrails in place. We apologize for any inconvenience caused to our UK clients, and we appreciate your continued support for our efforts to make crypto trading safer and more sustainable for the future of the industry.”
The FCA and UK crypto
Last June, the FCA revealed the new regulations following UK government legislation to bring crypto promotions under the spotlight.
“It is up to people to decide whether they buy crypto. But research shows many regret making a hasty decision. Our rules give people the time and the right risk warnings to make an informed choice,” said Sheldon Mills, FCA executive director, consumers and competition.