Bybit to leave UK ahead of upcoming FCA regulations
Bybit previously denied reports that it was planning to leave the country, but has reversed that decision until it can confirm it is in full compliance with new regulations.
Crypto exchange Bybit is leaving the U.K. market in anticipation of the new crypto marketing rules set to take effect in October.
A Sept. 22 announcement from the exchange stated that the new rules by the U.K. Financial Conduct Authority have made it necessary for the exchange to pause operations in the country to embrace the regulation proactively.
The announcement comes less than a week after Bybit denied rumors that it would leave the country. At the time, the crypto exchange said its commitment to the UK market was unwavering and intends to stay for a long time.
However, the temporary pause appears to align with Bybit’s long-term goal. According to the announcement, “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.”
With the exchange pausing service, U.K. residents and nationals cannot open new accounts on Bybit from October 1. Existing users will also be unable to deposit, create new contracts, or increase their positions starting October 8. But they can still reduce and close their positions or withdraw their assets.
Bybit will liquidate all open positions of U.K. customers by January 8, and all liquidated funds will be available for withdrawal.
The developments underscore the challenges facing crypto companies in the U.K. due to newly implemented marketing regulations. These regulations aim to enhance transparency in crypto advertising and safeguard consumer interests. Consequently, a number of crypto firms, including Luno, are reevaluating their operational strategies in the country.
Nevertheless, these regulations have faced criticism from industry experts who argue that compliance could pose a substantial financial burden for crypto projects. Gabriel Shapiro, General Counsel at Delphi Labs, asserted that achieving compliance could entail costs exceeding $500,000 for crypto ventures.