Bybit, a cryptocurrency exchange, stated on Friday that it is ceasing operations in the United Kingdom to adhere to the Financial Conduct Authority’s (FCA) new guidelines on communication and promotion for cryptocurrency businesses. The FCA released Policy Statement PS23/6, titled “Financial promotion rules for cryptoassets,” in June. It contains a description of the new regulations to be embraced after crypto exchange Bybit suspends services in the U.K.
According to the press release, the company has emphasized that it is their primary objective to operate their business whilst conforming to all applicable “rules and regulations in the U.K.” This announcement from Bybit arrived just a week after the company was recorded to have said that it was exploring all available options to stay in the country and carry on commerce.
FCA and Bybit Happen to Coincide
The FCA’s deadline for crypto asset providers marketing to clients in the UK to appear in compliance with specific standards intended to deliver “clear, fair, and not misleading” marketing regimes will coincide with the Dubai-based crypto exchange’s schedule to wind down its services. The FCA originally made the guidelines public in June of this year and again issued a caveat on September 21, 2023 – reminding all digital token businesses of the publicized time limit of October 8 and the potential for criminal prosecution from not heeding the orders.
Bybit stated that as of October 1st, applications for new accounts from U.K. citizens or residents will no longer be accepted. For all goods and services, existing users will neither be able to place any extra deposits, raise any of their current holdings, nor enter into any fresh contracts after October 8. However, the exchange stated that they would be validly able to reduce and close their positions as well as “withdraw their funds from” the company’s platform. Once crypto exchange Bybit suspends services in the U.K., all the aforementioned changes will be activated, and customers are also strongly advised to take note of the same and mark their calendars.
Furthermore, as per the official statement from Bybit, users in the United Kingdom who may be impacted by this move are “strongly encouraged” to close their positions by 8 a.m. UTC on January 8, 2024. The exchange specified that such customers’ “open positions will be liquidated” after the expiry of a specified deadline and that these funds of liquidation “will be available for withdrawal.”
It is worthwhile to mention that this is not the first time that Bybit has been seen modifying its crypto services in reaction to State legislative changes. The exchange had declared in May that it would cease offering its services in Canada to quite a similar extent as a result of “recent regulatory developments.” Bybit, however, has kept on expanding into new markets despite these obstructing changes. This includes the case of the nation of Kazakhstan, where the company was granted in-principle permission to function as a provider of cryptocurrency custody services in May.
In response to the new regulations from the British government, Bybit is not the sole cryptocurrency company to cease operations in the U.K. Payments behemoth PayPal announced this past month that it would have to halt all of its cryptocurrency services in the nation until 2019. The parent company of CoinDesk, Digital Currency Group – which owns Luno, the popular wallet, and forum for the sale, purchase, storage, and trade of Bitcoins – has also said that it will bar some U.K. clients from making additional investments through its exchange.
Bybit has firmly decided to diligently and immediately adopt the requisite rules and halt operations in the U.K. crypto market. This suspension of workings will enable the business to save and concentrate its time, efforts, and finances so that it can better adhere to the rules established by the British authorities henceforth for the years to come. As crypto exchange Bybit suspends services in the U.K., British crypto enthusiasts are curious as to what future path the company will walk down in this regard.