2023-09-22 20:11:20
© Reuters. ByBit closes new UK operations
Blockmarket – Due to new regulatory pressures, Dubai-based exchange ByBit has announced the suspension of its operations in the United Kingdom. The announcement was made this Friday (22), as a direct response to new rules imposed by the UK Financial Conduct Authority (FCA), which will come into force on October 8th.
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: pic.twitter.com/06ucS4giKV
— Bybit (@Bybit_Official) September 22, 2023
The new regulations
A Financial Conduct Authority announced a series of strict guidelines, especially focused on marketing and communication by cryptoasset companies. ByBit, as a consequence, chose to close the entry of new users to the platform.
From October 1st, UK-based investors will not be able to register with the broker, while existing users will face significant restrictions from October 8th. These include banning new deposits, creating new contracts and increasing existing positions. Reducing and closing positions as well as withdrawing funds will remain accessible.
Existing users are strongly encouraged to manage and close their positions by January 8, 2024. After this deadline, all open positions will be liquidatedwith the resulting funds available for withdrawal.
The consequences of the new rules
ByBit is not alone in closing the door on cryptocurrency intermediation in the UK; Other large companies in the financial sector, such as PayPal (NASDAQ:) and Luno, also temporarily suspended their crypto services in the region, showing a trend of retraction in the face of regulatory pressures. The FCA, in turn, maintains its firm stance, issuing warnings and setting deadlines.
ByBit, despite the setback in the UK, continues its mission to provide next-level trading experiences to all crypto enthusiasts, with appropriate safeguards in place. The company has expressed its commitment to regulatory compliance and safety, aiming for a strengthened return to the UK market in the future.
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