Bybit to Suspend Operations in the UK Due to New Regulation
Crypto exchange Bybit has announced that it will suspend its operations in the United Kingdom (UK) starting next month due to new regulations in the blockchain industry. The decision comes after the enactment of marketing regulations that require companies to register with the Financial Conduct Authority (FCA). Bybit is not currently on the FCA’s cryptographic registry. As a result, starting from 1 October, new customers will no longer be able to open accounts, and existing clients will have restrictions on depositing new funds and creating new contracts. However, they will still be able to close positions and withdraw funds.
New Crypto Regulation Ends Bybit’s Activities in the UK
Bybit has announced that it will suspend its operations in the UK next month due to new regulations. The decision follows the introduction of marketing and communication rules by the FCA. From 8 October, crypto firms must be registered with the FCA to publish advertisements and communications. Bybit has chosen to proactively embrace regulation and pause its services in the UK market. This move comes after Bybit explored all possible options to remain active in the country. Starting from 1 October, new customers cannot open accounts, and existing clients have restrictions on depositing funds and creating contracts.
The FCA’s Crypto Advertising Regulations
The FCA has been preparing strict regulations for advertising in the cryptocurrency sector. Under these regulations, cryptocurrencies will be classified as “limited mass market investments.” Advertising and promotion must include clear risk warnings and are prohibited from offering investment incentives such as “invite a friend” or “new member bonuses.” These regulations are part of the Financial Services and Markets Bill, which aims to regulate financial activities post-Brexit. Despite opposition during consultations, including classifying cryptocurrencies as high-risk investments and banning non-real-time promotion offers for new investors, the FCA will proceed with these measures.
Clarity and Transparency Required Under UK Sanctions
The FCA emphasizes the importance of thorough due diligence and providing evidence on the underlying cryptographic asset to ensure balanced and transparent financial promotions. Misleading statements regarding stability or links to fiat currencies must be avoided when promoting stablecoins. These new promotion rules are necessary due to the significant increase in cryptocurrency holdings in the UK. The FCA aims to prevent and reduce harm in the cryptocurrency industry. Failure to comply with the FCA’s promotion rules could result in penalties, including imprisonment and fines.
Hot Take: Bybit Ceases Operations in the UK Due to New Regulations
Crypto exchange Bybit has made the decision to suspend its operations in the UK starting next month due to new regulations imposed by the FCA. These regulations require crypto firms to register with the FCA for advertising and communications purposes. Bybit is not currently on the FCA’s cryptographic registry, leading to its proactive choice to embrace regulation and pause services in the UK market. While existing clients will still have limited functionalities, such as closing positions and withdrawing funds, new customers will no longer be able to open accounts. This move reflects a growing trend of regulatory scrutiny in the crypto industry.
By
By
By
By