{"id":64504,"date":"2023-09-23T07:11:43","date_gmt":"2023-09-23T11:11:43","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/bybit-to-stop-uk-services-as-fin-regulators-clamp-down\/"},"modified":"2023-09-23T07:11:46","modified_gmt":"2023-09-23T11:11:46","slug":"bybit-to-stop-uk-services-as-fin-regulators-clamp-down","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=64504","title":{"rendered":"Bybit to Stop UK Services as Fin Regulators Clamp Down"},"content":{"rendered":"
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Cryptocurrency exchange\u00a0Bybit<\/strong>\u00a0has revealed its decision to suspend services in the United Kingdom (UK) due to impending regulations from the country’s\u00a0Financial Conduct Authority (FCA)<\/strong>.\u00a0<\/p>\n

In a Friday announcement, the exchange said it would begin the suspension process on October 1 and would no longer accept new account applications.\u00a0<\/p>\n

This will be followed by the suspension of new deposits, new contracts, and changes to positions for existing UK users on October 8.<\/p>\n

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The move comes in response to the FCA’s introduction of new rules regarding marketing and communications by crypto businesses.\u00a0<\/p>\n

“Bybit has made a choice to embrace the regulation proactively and pause our services in this market,” the firm said.<\/p>\n

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“The suspension will allow the company to focus its efforts and resources being able to best meet the regulations outlined by the UK authorities in the future.”<\/p>\n<\/blockquote>\n

Back in June, the FCA announced a revised financial promotions regime regarding the marketing of cryptocurrency assets.<\/p>\n

On September 21, the agency issued a warning, reminding firms of the October 8 deadline and the potential risk of criminal charges.<\/p>\n

While the FCA indicated that some firms may have until January 2024 to comply with the marketing rules, they would need prior approval from the regulator.<\/p>\n

Bybit Continues to Wind Down Operations Across the World<\/h2>\n

This is not the first time Bybit has scaled back its services across the world in response to regulatory developments.\u00a0<\/p>\n

In May, the exchange\u00a0announced plans\u00a0to exit Canada, citing growing regulatory scrutiny in the country.\u00a0<\/p>\n

However, Bybit has also expanded into new markets, such as Kazakhstan, where it received in-principle approval to operate as a crypto custody service provider in May.<\/p>\n

Earlier this month, Bybit CEO Ben Zhou\u00a0explained\u00a0that the new marketing rules set to be enforced in a few weeks will tighten the market, possibly forcing the firm off the UK market.<\/p>\n

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\u201cWe do see regulation becoming more strict. Most likely, we\u2019ll have to retreat in many countries. I think the UK, we\u2019ll have to exit very soon. We recently exited France.\u201d\u00a0<\/p>\n<\/blockquote>\n

Zhou added that the new amendment has changed the ecosystem around financial solicitation to the extent that it makes it impossible to practice reverse solicitation, a practice most firms adopted to maneuver the previous laws.\u00a0<\/p>\n

Meanwhile, Bybit will not be alone in facing the challenges caused by the new FCA rules as several industry executives and observers have pointed out the effect of such policy.<\/p>\n

On Sept 11, cryptocurrency exchange\u00a0Luno revealed plans to halt\u00a0<\/u>certain clients from investing in crypto from Oct 6 two days before the enforcement of the new FCA rules.<\/p>\n

Similarly, Delphi Labs general counsel Gabriel Shapiro has warned that most crypto firms will struggle to comply with the new financial promotions regulations.\u00a0<\/p>\n

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