Bybit Suspends UK Services As New Regulations Loom

Updated: 22 September 2023

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Crypto exchange Bybit is suspending its services in the UK ahead of new cryptocurrency marketing regulations to be put in place next month by the Financial Conduct Authority (FCA).

The exchange said in a statement that no new accounts can be opened from Oct. 1, and on Oct. 8 current clients will no longer be able to add new funds, make new contracts, or raise their positions.

Due to recent UK regulatory changes, Bybit will suspend its services in the UK. New account applications cease from Oct 1, 2023, 8AM UTC. Existing UK users, please manage your positions before Jan 8, 2024, 8AM UTC. #Bybit

Find out more here: https://t.co/ubKN3NrFhE pic.twitter.com/06ucS4giKV

— Bybit (@Bybit_Official) September 22, 2023

However, the Dubai-based crypto company said customers will be allowed to reduce and close their positions as well as withdraw their money from the platform.

Bybit further advised UK customers to wind down their positions by Jan. 8, after which their open positions will be liquidated and the liquidated funds made available for withdrawal.

From Oct. 8, all crypto business will be required to adhere to the new UK advertising and promotion regulations. These rules call for cryptocurrency businesses to register with the FCA in order to be permitted to authorize communications and advertisements.

“We apologize for any inconvenience caused to our UK clients, and we appreciate your continued support for our efforts to make crypto trading safer and more sustainable for the future of the industry,” Bybit said.

Is Bybit In or Out?

The crypto exchange did not give a definite period for which the suspension is expected to last. It said though that it “will allow the company to focus its efforts and resources on being able to ”best meet the regulations outlined by the UK authorities in the future.”

However, the Block reported Bybit CEO and co-founder Ben Zhou as saying the exchange may exit the UK crypto market because of difficulties complying with the new rules.

“We do see regulation becoming more strict,” he told The Block. “Most likely, we’ll have to retreat in many countries. I think the UK — we’ll have to exit very soon. We recently exited France.”

The CEO then went on to refute the claims saying that it was committed to the market and pledged to work with regulators to comply with the new regulatory set up.

At Bybit, we consider the UK to be a highly important market for the advancement of crypto and blockchain technologies. Our commitment to this market is unwavering, and we intend to maintain our presence in the UK for the long term. Meanwhile, we are dedicated to working…

— Bybit (@Bybit_Official) September 14, 2023

The new rules have caused several other exchanges and platforms to halt operations. They include PayPal, which announced that it would temporarily pause its crypto services in the country until next year, as well as CoinCorner, which according to The Block, will also discontinue its affiliate program for UK consumers on October 1st.