Key takeaways :
- Bybit Halts UK Operations Due to New FCA Regulations on Crypto Marketing.
- This suspension period will enable Bybit to realign its services in accordance with the new FCA guidelines.
Bybit, the digital assets exchange, announced its decision to halt new account applications from UK residents beginning October 1, following regulatory changes introduced by the UK’s Financial Conduct Authority (FCA).
The FCA’s new rules, set to take effect on October 8, encompass various restrictions on cryptocurrency promotions, including the prohibition of incentives like referral bonuses.
In a blog post, Bybit expressed its proactive approach in embracing these regulations and temporarily suspending its services in the UK market. The company aims to redirect its efforts and resources towards aligning with the UK authorities’ regulatory framework in the future.
The post also encouraged UK customers affected by these measures to take necessary actions before January 8, 2024. The official announcement reveals; Bybit’s decision to withdraw from the UK market was influenced by the FCA’s June announcement outlining the ‘forthcoming regulatory changes.”
In a nutshell, for Existing Users:Starting at 8 AM UTC on October 8, 2023, UK Customers will no longer have the ability to initiate new deposits, create fresh contracts, or increase any existing positions across all products and services offered by Bybit.
Nevertheless, they retain the option to reduce and close their positions, as well as withdraw their funds from our platform.Additionally, crypto firms are now obligated to prominently display risk warnings to consumers in the UK.
Lucy Castledine, Director of Consumer Investments, underscored the FCA’s commitment to safeguarding consumers, stating :
“Starting this October, crypto firms are required to market their services to UK consumers with transparency, fairness, and honesty. Furthermore, they must provide risk warnings that are easily comprehensible to the public.”
Bybit’s departure from the UK market comes in response to the FCA’s stern caution to cryptocurrency enterprises regarding the imminent financial promotions regime.
In a letter dated September 21, the regulatory authority conveyed that all companies engaged in promoting cryptoassets to UK consumers must prepare for the implementation of this regime.
The FCA emphasized, “This regulatory framework holds significant importance in minimizing and averting potential harm to consumers who may invest in cryptoassets that are incompatible with their risk tolerance.’