New regulations on marketing that take effect Oct. 8 require firms to be registered with the FCA. Bybit is not on the FCA’s crypto register.
Crypto exchange Bybit said it will suspend its U.K. operations next month in response to regulatory changes just a week after saying it was exploring all options to stay in the country.
New customers won’t be able to open accounts as of Oct. 1, and starting Oct. 8 existing customers won’t be allowed to add funds, create new contracts or increase their positions. They will, however, be able to reduce and close their positions, and withdraw their funds from the platform, the Dubai-based company said in a post on its website.
The Oct. 8 date is significant because that’s when firms need to comply with U.K. rules on advertising and promotions, which require crypto firms to be registered with the Financial Conduct Authority to be able to approve ads and communications. Bybit is not on the FCA’s crypto register.
Bybit is not the only crypto firm suspending U.K. operations in response to the new rules. Payments giant PayPal said last month that it would temporarily pause its crypto services in the country until next year. Luno, which is owned by CoinDesk parent Digital Currency Group, has also said it would prevent some U.K. clients from investing further through its exchange.
“In light of the U.K. Financial Conduct Authority’s introduction of new rules regarding marketing and communications by crypto businesses as outlined in the June 2023 Policy Statement (PS23/6) entitled ‘Financial Promotion Rules for Crypto assets,’ Bybit has made a choice to embrace the regulation proactively and pause our services in this market,” the company said.