Cryptocurrency exchange Bybit has announced that it will suspend its services in the United Kingdom (UK) due to impending regulations from the Financial Conduct Authority (FCA). Starting on October 1, Bybit will begin the suspension process and will no longer accept new account applications. This will be followed by the suspension of new deposits, new contracts, and changes to positions for existing UK users on October 8. The decision comes in response to the FCA’s new rules on marketing and communications by crypto businesses.
Bybit stated that it is proactively embracing regulation and pausing its services in the UK market in order to comply with the regulations outlined by the authorities. This move follows Bybit’s decision to exit Canada earlier this year due to regulatory scrutiny. Bybit CEO Ben Zhou has indicated that the new marketing rules will tighten the market and may force the company to exit the UK market. Several industry executives and observers have also highlighted the challenges posed by the new FCA rules.
Luno, another cryptocurrency exchange, plans to halt certain clients from investing in crypto from October 6, two days before the enforcement of the new regulations. Gabriel Shapiro, the general counsel at Delphi Labs, has warned that most crypto firms will struggle to comply with the new financial promotions regulations.