Cryptocurrency exchange Bybit has announced that it will suspend its operations in the UK starting next month. This decision comes in response to the UK Financial Conduct Authority’s introduction of new rules regarding marketing and communications by crypto businesses.
Bybit had previously stated that it was exploring all options to remain in the country. However, the new regulations, which take effect on October 8, 2023, have led the company to proactively embrace the regulation and pause its services in the UK.
British Regulatory Pressure Claim Another Victim, Bybit
Starting from October 1, 2023, Bybit will no longer accept new account applications from UK residents. From October 8, existing customers will not be able to add funds, make new contracts, or increase their positions.
In response to the new regulations on marketing and communications for crypto businesses, as detailed in the Financial Promotion Rules for Crypto Assets Policy Statement issued by the Financial Conduct Authority, Bybit has decided to proactively comply with these rules. As a result, the company will temporarily halt its services in the U.K.
However, the crypto exchange has assured its customers that they will be able to reduce and close their positions and withdraw their funds from the platform. The UK’s affected customers have until January 8, 2024, to manage and wind down their positions. After this date, any open positions will be closed, and the liquidation funds will be available for withdrawal.
Bybit has apologized for any inconvenience caused to its UK clients and expressed appreciation for their continued support. The company’s goal is to offer cutting-edge trading experiences to cryptocurrency believers with the necessary safeguards in place as the adoption of cryptocurrencies continues to rise across the globe.
Bybit is not alone in its decision to suspend operations in the U.K. in light of the new regulations. Last month, the renowned payment service provider, PayPal, also announced a temporary halt to its cryptocurrency services in the country, with plans to resume next year.