Leading cryptocurrency exchange Bybit has announced plans to halt its operations in the United Kingdom (UK) by next month.
According to an announcement today, Bybit’s decision to suspend its operations in the UK is in response to new crypto rules set by the Financial Conduct Authority (FCA).
“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,’ Bybit has made a choice to embrace the regulation proactively and pause our services in this market,” the announcement read.
Bybit Announces New Measures
Consequently, Bybit said new UK-based customers will not be able to open accounts from October 1. In addition, the leading exchange said it would not allow existing customers to add funds, create new contracts, or increase their existing trade positions from October 8.
However, Bybit said existing UK customers will be allowed to reduce or close their positions and also withdraw their funds from the trading platform.
It bears mentioning that October 8 is crucial to Bybit because it is the same date that firms are mandated to comply with the new rules.
Furthermore, the exchange set a final deadline of January 8, 2024, to enable its UK customers to manage and close their remaining positions on the platform.
For context, the new rule established by the FCA requires firms to register with the financial watchdog in order to have their ads and communications approved. However, Bybit is not listed among the companies on FCA’s crypto register.
Notably, Bybit did not disclose the duration of the suspension. It only said the suspension would allow it to focus its resources and think of better ways to comply with the FCA’s regulatory requirements in the future.
UK’s New Rules Affect Other Crypto Firms
Meanwhile, Bybit is not the only crypto-related firm affected by the FCA’s new rules. Last month, financial giant PayPal said it would temporarily suspend its crypto services in the UK until next year.
Similarly, Luno also announced plans to prevent some UK customers from investing in cryptocurrencies due to the FCA’s rule. The firm noted that the move will be implemented on October 6.