Bybit Set to Halt UK Operations in October Over New Advertisement Regulations

Today, Bybit, the cryptocurrency exchange, confirmed that it will be ceasing its services in the UK. 

The decision is in response to the June 2023 Policy Statement issued by the Financial Conduct Authority (FCA) of the UK, titled 'Financial Promotion Rules for Crypto Assets'. This policy sets forth a new framework of rules and guidelines regarding marketing and communications strategies for businesses involved in cryptocurrency. PS23/6 With the new regulations coming into effect, companies wanting to promote financial products related to qualifying cryptocurrency assets must first gain approval from a licensed entity under the Financial Services and Markets Act 2000 ('FSMA') if they are not already authorized themselves.

Any promotional activities that are either executed by or have received approval from an authorized entity must comply with FCA standards. This includes requirements for maintaining fairness, clarity, and precision, while steering clear of misleading information.

According to the FCA, 'There have been multiple instances of firm failures leading to severe consumer losses.' They highlighted that many of these cases revolved around deceptive promotions which offered inflated return rates without any backing evidence and misrepresented high-risk, intricate products as reliable, such as the Terra/Luna algorithmic stablecoin project.

As a result, Bybit will temporarily halt its presence in the UK market to refocus its resources and efforts towards adhering to the impending regulatory requirements established by UK agencies. policy statement This announcement isn’t unexpected, as the exchange indicated last week its intention to exit the UK market. Moreover, it has also retracted from operations in France.

Effective from October 1 at 8 AM UTC, Bybit will stop accepting new account applications from individuals residing in the United Kingdom and those with UK nationality, referred to collectively as 'UK Customers.'

For current users categorized as UK Customers, the alterations will be implemented starting October 8 at 8 AM UTC. After this date, UK Customers will not be permitted to initiate any new deposits, open new contracts, or expand their positions across all available offerings on Bybit's platform. Nevertheless, they will still have the option to reduce their holdings, close current positions, and withdraw their funds. revealed its decision Bybit strongly advises UK Customers to take prompt action to manage and wind down their positions by January 8, 2024, at 8 AM UTC. Post this cutoff point, any positions that remain open will face liquidation, and the resulting funds will be made available for withdrawal.

Impact on New and Existing Users

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Cindy works as a journalist at Metaverse Post, focusing on topics surrounding web3, NFTs, the metaverse, and artificial intelligence, emphasizing interviews with prominent figures in the Web3 space. She has engaged with over 30 C-level executives, sharing their insights with the audience. Originally from Singapore, she now resides in Tbilisi, Georgia, holding a Bachelor's degree in Communications and Media Studies from the University of South Australia, boasting a decade’s worth of experience in journalism and writing.

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