"Bybit Takes Action to Ensure Compliance by Suspending Services in the UK"

Bybit has made an unexpected announcement by declaring the suspension of its operations in the United Kingdom (UK). Starting on October 1, 2023, the exchange will stop accepting new users who are based in the UK. Existing users in the region are expected to gradually close their positions on the exchange by January 8, 2024.

The decision by Bybit to halt its services in the UK is a result of its proactive approach to adhere to the new cryptocurrency regulations introduced by the Financial Conduct Authority (FCA), which are scheduled to be in effect from October 8, 2023.

In a statement issued on September 22, 2023, Bybit expressed regret to its UK customers for any inconvenience caused by this suspension. The exchange underscored that this move enables them to redirect their efforts and resources toward aligning with future regulatory requirements in the UK.

This announcement represents a significant departure from Bybit's previous position. Previously, the exchange had dismissed rumors of suspending its operations in the UK and had expressed its dedication to UK users while exploring options for regulatory compliance. Ben Zhou, the CEO of Bybit, also mentioned that the exchange was engaged in discussions with the regulator to find the most suitable path forward. However, he clarified that no final agreement had been reached at that point, and they would update their customers once an agreement had been finalized.

FCA Issues a Strong Warning to Crypto Companies Regarding Compliance with New Regulations On September 21, 2023, the Financial Conduct Authority (FCA) issued a stern warning to cryptocurrency companies operating in the UK regarding their compliance with the upcoming regulations. The FCA expressed concerns about the lack of engagement by crypto firms, especially those operating from foreign jurisdictions.

The UK's new regulatory framework, introduced in June 2023, primarily focuses on regulating the promotion of crypto services to UK residents. These regulations stipulate that any company advertising crypto services to the local population must obtain authorization from the FCA. The rules also seek to restrict referral programs and practices that might excessively incentivize individuals to invest in cryptocurrencies. Notably, these regulations apply to crypto businesses worldwide as long as they serve UK citizens.

Although the regulations are set to take full effect on October 8, 2023, the FCA has indicated its willingness to provide an extended grace period of up to three months for companies needing additional time to ensure compliance.