Dubai-based cryptocurrency exchange Bybit has revealed plans to suspend its services for users in the United Kingdom, citing impending regulations from the UK Financial Conduct Authority (FCA).
According to Bybit's announcement on September 22, it will initiate the suspension of services for UK residents from October 1. This includes no longer accepting new account applications. Subsequently, new deposits, new contracts, and position changes for existing users will be halted on October 8.
Bybit made this decision in response to the UK Financial Conduct Authority's introduction of new rules governing the marketing and communication practices of cryptocurrency businesses. By voluntarily complying with these regulations and suspending services in the UK market, Bybit aims to align with the FCA's requirements.
This move by Bybit aligns with the FCA's deadline for cryptocurrency companies marketing to UK users to adhere to specific rules, ensuring clear, fair, and non-misleading marketing practices. The FCA initially unveiled these rules in June and issued a reminder on September 21, emphasizing the October 8 deadline and the potential for criminal charges.
Bybit's suspension of services is intended to enable the company to focus on meeting future UK regulatory requirements effectively. The FCA has suggested that certain companies may comply with marketing rules until January 2024, provided they obtain prior approval from the regulatory agency.
Earlier in the year, Bybit also ceased its services in Canada due to regulatory developments. However, the company has continued to expand into new markets, securing in-principle approval to operate as a cryptocurrency custody service provider in Kazakhstan in May.
