Bybit Temporarily Suspends UK Operations in Response to FCA’s New Rules

Bybit crypto exchange has decided to temporarily suspend its services in the United Kingdom. This strategic move comes in response to the recently introduced regulations by the UK’s Financial Conduct Authority (FCA), set to take effect in the coming month.

Starting from October 1, Bybit will halt the acceptance of new account applications from UK users.

Account closure deadline for existing UK customers

For existing Bybit clients in the UK, the changes take effect on October 8. From that date onwards, they will no longer have the option to open new accounts, initiate fresh contracts, or increase their current positions. However, they retain the flexibility to reduce or liquidate their existing positions and withdraw funds from the platform.

A significant date on the horizon is January 8, 2024, which Bybit has designated as the final day for UK clients to manage their accounts and deal with their remaining assets. Any positions left untouched beyond this date will be automatically liquidated, with the resulting funds made available for withdrawal.

This development follows our earlier report that Bybit was contemplating an exit from the UK market due to the impending regulatory changes. These changes are part of regulatory authorities’ ongoing efforts to introduce transparency and fairness to the cryptocurrency market, which includes the introduction of a mandatory cooling-off period for first-time investors.

Bybit UK’s exit decision reflects its commitment to compliance

By taking swift action to align with these forthcoming regulations, Bybit demonstrates its commitment to compliance and underscores a pivotal moment in the evolution of the cryptocurrency ecosystem.

For the time being, Bybit has chosen to cease operations in the UK market, citing the June 2023 Financial Promotion Rules for Crypto Assets Policy Statement (PS23/6) as the driving force behind this decision.

While the duration of this suspension and Bybit’s future plans in the UK market remain uncertain, the company is actively reconfiguring its operations to meet regulatory requirements.

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Bybit’s aim is to promote transparency and confidence within the Bitcoin sector, contributing to a more robust and secure future for the cryptocurrency industry as a whole.

In light of these changes, Bybit extends its apologies to its British clients for any inconvenience caused and expresses gratitude for their continued support.

The cryptocurrency community eagerly awaits further developments, hoping to see Bybit’s return to the UK market in the future, armed with a more compliant and secure framework.