The recent decision by Bybit to suspend its operations in the United Kingdom is not an isolated incident within the crypto industry.
In a sudden turn of events, crypto exchange Bybit has announced its decision to suspend its operations in the United Kingdom. This move comes just a week after the company expressed its commitment to explore all available options to continue operating within the country.
Bybit Exchange’s Proactive Response to FCA
The company has outlined a timeline for these changes, providing clarity to its customers. As of October 1, new customers will be unable to open accounts on the platform, while existing customers will face further restrictions on their activities on the exchange, including the inability to add funds, create new contracts, or increase their positions by October 8.
However, existing customers of Bybit will still have some limited options after the restrictions come into effect. They will be able to reduce and close their positions, allowing them to manage their existing holdings.
Additionally, UK Customers who are affected by these measures are strongly encouraged by Bybit to take action by January 8, 2024, at 8 AM UTC, to manage and wind down their positions. After this deadline, any remaining open positions will be subject to liquidation, but the liquidated funds will be available for withdrawal.
The date of October 8th holds particular significance in Bybit’s decision to suspend its U.K. operations. This is the same date when firms operating in the crypto space must comply with U.K. rules governing advertising and promotions.
These regulations require crypto firms to be registered with the country’s market regulator, the Financial Conduct Authority (FCA) in order to approve advertisements and communications related to their services. Unfortunately for Bybit, the exchange is not listed on the FCA’s crypto register, rendering it ineligible to continue its advertising and promotional activities in the U.K. after October 8th.
The decision reflects the company’s commitment to complying with evolving regulations and maintaining transparency in its operations. By suspending its UK services, Bybit aims to avoid regulatory non-compliance and any associated consequences.
Bybit Takes Precedence from Other Crypto Firms
The recent decision by Bybit to suspend its operations in the United Kingdom is not an isolated incident within the crypto industry. Several other prominent crypto firms have taken similar actions in response to new regulatory changes and the evolving landscape of digital asset regulations in the U.K.
Last month, PayPal Holdings Inc (NASDAQ: PYPL), one of the world’s largest payment companies and a major player in the crypto space, revealed its decision to temporarily pause its crypto services in the U.K. until the following year.
Similarly, Luno, a crypto exchange owned by Digital Currency Group (DCG), has also taken steps to comply with the changing regulatory environment. The exchange has decided to restrict some of their U.K. clients from making further investments through their exchange.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.