Bybit Halting Services in the UK to Comply with FCA Regulations
Crypto exchange Bybit has announced that it will be suspending its services in the United Kingdom in order to comply with new regulations set by the Financial Conduct Authority (FCA). The FCA’s “Financial promotion rules for cryptoassets” were published in June as Policy Statement PS23/6.
In an official statement, Bybit explained that it has chosen to proactively embrace the new regulations and temporarily pause its services in the UK market. This decision will allow the company to focus on meeting the regulatory requirements outlined by the UK authorities in the future.
Changes to Account Opening and Trading Activities
Starting from October 1, Bybit will no longer accept account opening applications from UK residents or nationals. Existing users will also face limitations, as from October 8 they will be unable to make new deposits, create new contracts, or increase their existing positions across all products and services. However, users will still have the ability to reduce and close their positions, as well as withdraw funds from the platform.
Recommended Wind-Down Period for UK Customers
Bybit has strongly encouraged its affected UK customers to wind down their positions by January 8, 2024, at 8 a.m. UTC. After this deadline, any remaining open positions will be liquidated, and users will be able to withdraw the funds resulting from the liquidation process.
Hot Take: Bybit Takes Proactive Approach towards Compliance
By choosing to halt its services in the UK and comply with FCA regulations, Bybit demonstrates its commitment to operating within legal boundaries. This proactive approach allows the company to focus on aligning its operations with future regulatory requirements. While this decision may inconvenience some users in the short term, it ultimately prioritizes the long-term sustainability and compliance of Bybit’s business. Bybit’s actions set a precedent for other crypto businesses to follow suit and adapt to evolving regulatory frameworks.
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