Bybit to halt operations in the UK amid regulatory changes
- Bybit will stop new account registrations on October 1 and end pause deposits and other services for existing customers on October 8.
- The exchange’s announcement comes ahead of the effective date for new FCA rules for crypto firms.
Bybit has notified its customers that it will suspend its services in the UK next month as it looks to align operations with new regulatory requirements.
According to the crypto exchange, the decision is “in light of the UK Financial Conduct Authority’s introduction of new rules regarding marketing and communications by crypto businesses as outlined in the June 2023 Policy Statement (PS23/6) entitled “Financial Promotion Rules for Crypto assets.”
The suspension will allow the exchange to focus resources on meeting the new regulation, Bybit said in the announcement.
No new customer registrations beginning October 1
No new registrations will be allowed as from October 1, while services to existing customers will be halted on October 8.
For current Bybit customers, the effective date will see them unable to make deposits, create new contracts, or increase positions. However, users will still be able to reduce or close positions as well as withdraw funds.
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
Find out more here: https://t.co/ubKN3NrFhE pic.twitter.com/06ucS4giKV
— Bybit (@Bybit_Official) September 22, 2023
All UK customers have been asked to take the necessary steps to manage and wind down positions. The timeline for such action will run until January 8, 2024, 8:00 am UTC.
“After the stipulated deadline, their open positions will be liquidated, and the liquidation funds will be available for withdrawal,” the exchange noted.
Bybit’s move comes ahead of the October 8 deadline for companies to comply with the new UK marketing rules on ads and promotions. The requirement is that a crypto company must have regulatory approval from the Financial Conduct Authority (FCA) for it to support ads and other promotional materials.
At the moment, FCA’s crypto register does not include Dubai-based Bybit. The company recently scored a crypto exchange and custody licence in Cyprus.
