ByBit to suspend UK market activity in early October
ByBit made the announcement a day after the FCA gave crypto companies ‘a final warning’
gabriel12/Shutterstock modified by Blockworks
ByBit is suspending services in the UK starting in early October as the UK implements new crypto marketing regulations.
“Bybit has made a choice to embrace the regulation proactively and pause our services in this market. The suspension 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,” a blog post said.
UK customers will no longer be able to create new accounts on ByBit starting on Oct. 1. The company will cease new deposits and position buys on Oct. 8.
“UK Customers who are implicated by these measures are strongly encouraged to take action by Jan. 8, 2024,” the post said.
ByBit cited a June posting from the FCA outlining the new approach as part of its choice to suspend its services in the UK market.
The June FCA post said that the regulation directly impacts consumers buying crypto, FCA-registered crypto companies, those attempting to register and overseas companies marketing to UK customers.
The announcement comes a day after the UK gave crypto companies a “final warning.”
In the Sept. 21 letter, the FCA cited “poor engagement from many unregistered, overseas crypto asset firms who have UK customers…” It stated that some had “refused to engage with the FCA”, despite the authority’s outreach attempts. Out of over 150 firms approached, only about 24 responded to a survey.
According to Lucy Castledine, the director of consumer investment, the regulatory framework requires that crypto firms in the UK present their offerings to UK customers “clearly, fairly and honestly. And they must provide risk warnings people understand.”
The regulations also require certain technical changes, such as the introduction of a cooling-off period. Firms registered within the UK have the option to request an extension of these deadlines until early January.
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