Bybit has announced the suspension of its services to residents of the United Kingdom due to regulatory changes introduced by the country’s Financial Conduct Authority (FCA).
The move comes in response to the FCA’s new rules regarding marketing and communications by crypto businesses. Notably, the new rules aim to establish clear, fair, and non-misleading marketing practices within the crypto industry.
Bybit’s decision to suspend services in the UK aligns with its proactive approach to embrace the new regulations set forth by the FCA. The company plans to phase out its services to UK residents in two stages.
First, Bybit will stop accepting new account applications from UK residents by 1 October. Second, new deposits, new contracts, and changes to positions for existing UK users will be suspended by 8 October.
Suspension in compliance with FCA rules
This timeline coincides with the FCA’s deadline for crypto asset firms to comply with the new rules. The FCA initially introduced these rules in June.
It also recently issued a warning on 21 September, reminding crypto businesses of the approaching 8 October deadline and the potential risk of facing criminal charges for non-compliance.
Bybit’s decision ensures that its operations comply with the FCA’s marketing and communication regulations. By temporarily suspending its services, the company aims to dedicate its efforts and resources to meeting the FCA’s outlined regulations effectively in the future.
The FCA has provided certain firms with the option to seek prior approval to extend their compliance deadline until January 2024. This allows them more time to adjust their marketing practices and communications.
However, Bybit has chosen to take proactive steps to comply with the rules promptly.
This is not the first instance of Bybit adjusting its services in response to regulatory developments. In May, the exchange announced a winding down of its services in Canada due to “recent regulatory developments.”
Despite these adjustments, Bybit has continued its expansion into new markets. This includes Kazakhstan, where it obtained in-principle approval to operate as a crypto custody service provider in May.