Bybit exits UK market as new crypto rules loom

UK’s Financial Conduct Authority (FCA) on crypto

Bybit, a crypto exchange platform, has announced that it will suspend its services in the UK from next month. The decision comes as a result of new regulations imposed by the UK's Financial Conduct Authority (FCA) on crypto businesses. The FCA aims to make the marketing of crypto products more transparent and accurate by introducing new rules, such as a cooling-off period for first-time investors.

According to Bybit's announcement, the company has chosen to "embrace the regulation proactively and pause our services in this market". Bybit's CEO Ben Zhou had previously said that the rule change meant that the crypto exchange's exit from the UK was likely. Zhou also said that the new rules could mean that having a website accessible to UK customers could be considered as a promotion.

Bybit will stop accepting new UK user account applications from Oct. 1. From Oct. 8, when the new rules take effect, existing UK users will not be able to make any new deposits, create new contracts or increase any of their existing positions for all products and services. Users will have until Jan. 8, 2024, to close their positions and withdraw their funds from the platform. Any positions left open after this date will be automatically liquidated.

Bybit did not specify how long the suspension will last or if it will return to the UK market in the future. However, the company said that "the suspension will allow the company to focus its efforts and resources on being able to best meet the regulations outlined by the UK authorities in the future". Bybit also apologized for any inconvenience caused to its UK clients and thanked them for their continued support.

Bybit is not the only crypto exchange affected by the UK's rule change. Other major platforms, such as OKX and Binance, are also reevaluating their strategies in light of the FCA's strict guidelines. The FCA has been cracking down on crypto businesses in recent months, banning some of them from operating in the country. The regulator has also warned consumers about the risks and volatility of investing in crypto assets.