Dubai-headquartered cryptocurrency exchange Bybit has announced the suspension of services to the United Kingdom in response to pending rules from the country’s Financial Conduct Authority, or FCA.
In a Sept. 22 announcement, Bybit said it will start suspending services to U.K. residents on Oct. 1 by no longer allowing new account applications. This move will be followed by the suspension of new deposits, new contracts and changes to positions for existing users on Oct. 8.
“In light of the UK Financial Conduct Authority’s introduction of new rules regarding marketing and communications by crypto businesses. [...] Bybit has made a choice to embrace the regulation proactively and pause our services in this market,” said the firm.
Due to recent UK regulatory changes, Bybit will suspend its services in the UK. New account applications cease from Oct 1, 2023, 8AM UTC. Existing UK users, please manage your positions before Jan 8, 2024, 8AM UTC. #Bybit— Bybit (@Bybit_Official) September 22, 2023
Find out more here: https://t.co/ubKN3NrFhE pic.twitter.com/06ucS4giKV
Bybit’s date to wind down its services will fall on the FCA’s deadline for crypto asset firms marketing to users in the U.K. to be in compliance with certain rules aimed at providing “clear, fair and not misleading” marketing regimes. The FCA first announced the rules in June and issued an additional warning on Sept. 21, reminding firms of the Oct. 8 deadline and the risk of criminal charges.
According to Bybit, the suspension of services “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.” The FCA suggested that certain firms could have until January 2024 to be in compliance with the marketing rules but would need prior approval from the regulator.
Bybit announced a similar winding down of services in Canada in May, citing “recent regulatory development” at the time. However, the firm has expanded into new markets, including Kazakhstan, where it received in-principle approval to operate as a crypto custody service provider in May.