Despite making efforts to continue its operations in the country, Bybit has announced that it will cease providing services in the UK beginning in the coming month citing the “regulatory changes,” due to regulatory actions of the Financial Conduct Authority (FCA).
Bybit to Leave the UK
According to a report, Bybit made an announcement on September 22 stating that it will begin the process of discontinuing its services for residents of the UK.
Process to Begin on October 1
As per the exchange, the decision will administer “the company to focus its efforts and resources on being able to best meet the regulations outlined by the UK authorities in the future.”
It is reported that the process will begin on October 1, starting with the the stopping of new account applications and then on October 8, they will suspend new deposits, new contracts, and alterations to positions for existing users.
FCA Cracks Down on Crypto Firms
This action has come about notably as a response to the rules announced by the FCA in June, which concerns providing “clear, fair and not misleading” marketing regimes. The announcement was then followed by an additional warning which was further issued on September 21. The warning served as a reminder to firms about the impending October 8 deadline and the potential risk of facing criminal charges.
However, The FCA indicated that specific firms might be granted an extension until January 2024 to ensure compliance with the marketing rules, provided they obtain prior approval from the regulatory authority.
Bybit Withdraws from Several Markets
Baybit states: “In light of the UK Financial Conduct Authority’s introduction of new rules regarding marketing and communications by crypto businesses. […] Bybit has made a choice to embrace the regulation proactively and pause our services in this market.”
It’s worth mentioning that in May, Bybit withdrew from the Canadian market for similar reasons, citing the regulatory landscape in the country as the main factor behind its decision to leave.