Cryptocurrency Exchange Bybit Temporarily Suspends Services in the UK, Citing Regulatory Compliance
Summary:
- Bybit, a prominent cryptocurrency exchange, temporarily suspends its services in the United Kingdom in response to new FCA regulations.
- Existing UK clients face restrictions on account activities, and a deadline is set for account closure, with positions left open subject to automatic liquidation.
- Bybit’s swift response underscores its commitment to regulatory compliance and the promotion of a secure and stable cryptocurrency industry.
Bybit, a prominent cryptocurrency exchange, has announced the temporary suspension of its services in the United Kingdom, citing the implementation of new regulations by the UK’s Financial Conduct Authority (FCA).
These regulatory changes, set to take effect next month, have prompted Bybit to halt new user account registrations from October 1, marking a significant development in the cryptocurrency landscape.
Bybit Imposes Deadline for UK Clients
Effective from October 8, existing UK customers on the Bybit platform will face limitations. They will be unable to create new accounts, initiate new contracts, or increase their current positions. However, users will retain the ability to reduce or liquidate their existing positions and withdraw funds from their accounts.
Bybit has set January 8, 2024, as the final date for UK clients to close their accounts and manage their remaining holdings. Any positions left open beyond this deadline will be subject to automatic liquidation, with the resulting funds available for withdrawal.
Bybit’s contemplation of withdrawing from the UK market in response to impending regulatory changes. These new measures reflect regulatory authorities’ ongoing efforts to enhance transparency and fairness in the cryptocurrency market, including the introduction of a mandatory cooling-off period for first-time investors.
Also Read: Bybit Exits Canada Due To Recent Regulatory Development
Bybit’s Swift Compliance Efforts
Bybit’s rapid response demonstrates its commitment to adhering to the forthcoming regulations and represents a significant stride in the cryptocurrency ecosystem. The decision to temporarily suspend its UK operations aligns with the guidance provided in the June 2023 Financial Promotion Rules for Crypto Assets Policy Statement (PS23/6).
The duration of Bybit’s suspension in the UK and the possibility of its return to the market remain uncertain. Nevertheless, the exchange is undergoing a reorganization process to ensure full compliance with regulatory requirements, with the overarching goal of fostering stability and security in the cryptocurrency industry. Bybit has expressed its apologies to its British clientele for any inconveniences caused and extended gratitude for their continued support.