ByBit Suspends UK Operations Amidst New Regulatory Measures
ByBit suspends services in the UK due to new crypto law introduced by the FCA. UK users have until January 8, 2024, to manage and conclude their positions.
ByBit, a Dubai-based cryptocurrency exchange, recently announced its decision to suspend services in the UK. This move comes after the new crypto law introduced by the UK's Financial Conduct Authority (FCA).
On September 22, ByBit released a statement detailing its plan to suspend its services for UK customers. This decision was made in anticipation of the deadline set for crypto firms to adhere to the UK's laws concerning advertisements and promotions. The announcement highlighted that UK users have until January 8, 2024, to manage and conclude their positions. Failure to do so before the deadline might result in liquidation, though the liquidated assets will remain available for withdrawal.
Due to recent UK regulatory changes, Bybit will suspend its services in the UK. New account applications cease from Oct 1, 2023, 8AM UTC. Existing UK users, please manage your positions before Jan 8, 2024, 8AM UTC. #Bybit
Find out more here: https://t.co/ubKN3NrFhE pic.twitter.com/06ucS4giKV — Bybit (@Bybit_Official) September 22, 2023
Starting October 1, ByBit will cease accepting new registrations from UK residents. Furthermore, from October 8, the deposit function will be disabled for existing users, who will also be restricted from creating new contracts or augmenting their positions. The company emphasized its proactive approach to embrace the new regulations, stating that in light of the UK Financial Conduct Authority's introduction of new rules regarding marketing and communications by crypto businesses, ByBit has chosen to embrace the regulation proactively and pause its services in this market.
“In light of the UK Financial Conduct Authority’s introduction of new rules regarding marketing and communications by crypto business […] 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 on being able to best meet the regulations outlined by the UK authorities in the future.”
The FCA has been assertive in its approach to regulate the crypto sector in the UK. On September 21, just a day before ByBit's announcement, the FCA issued a final warning to cryptocurrency businesses that were unlawfully promoting their services to UK customers. The regulator emphasized that all such firms must align with its financial promotion requirements by October 8. These rules, initially announced in June, are designed to ensure that marketing communications related to crypto assets are "clear, fair, and not misleading." While the FCA has suggested that some firms might have an extended deadline until January 2024 to comply, they would need prior approval from the regulatory body.
Earlier in May, ByBit had announced a similar winding down of its services in Canada, attributing the decision to "recent regulatory development." On the flip side, the firm has been expanding its reach in other regions. For instance, in Kazakhstan, ByBit received in-principle approval to function as a crypto custody service provider.