Bybit to Suspend UK Services from October in Response to New Ad Regulations
In Brief
Starting from Oct 1, new account openings will not be accepted from UK residents and nationals.
UK Customers are strongly encouraged to manage and wind down their positions before January 8, 2024, to avoid automatic liquidation.
Cryptocurrency exchange, Bybit, today announced that it will be suspending its services in the UK.
The decision follows the issuance of the June 2023 Policy Statement (PS23/6), titled “Financial Promotion Rules for Crypto assets,” by the UK Financial Conduct Authority (FCA). The policy outlines new rules and guidelines concerning marketing and communications practices for cryptocurrency businesses.
With the implementation of the new regulations, companies wishing to conduct financial promotions concerning qualifying crypto assets must seek approval for their promotions from an authorized entity as per the Financial Services and Markets Act 2000 (“FSMA”) if they do not possess authorization themselves.
Promotions that are either communicated by or receive approval from an authorized entity must adhere to FCA regulations. This includes the obligation to maintain fairness, clarity, and accuracy, while avoiding any form of misrepresentation.
“There have been several firm failures resulting in significant losses for consumers,” the FCA said in its policy statement. “Many of these cases involved misleading promotions such as offering high rates of return with no evidence of how these could be achieved and promoting high-risk, complex products as ‘stable’ such as the algorithmic stablecoin project Terra/Luna.”
Consequently, Bybit will temporarily suspend its services in the UK market, allowing the company to reallocate its resources and efforts towards meeting the anticipated regulatory standards set by UK authorities.
This announcement comes as no surprise as the exchange revealed its decision to exit the UK market last week. The exchange has also withdrawn from the French market.
Impact on New and Existing Users
Starting from October 1 at 8 AM UTC, Bybit will cease accepting new account opening applications from United Kingdom residents and United Kingdom nationals, collectively referred to as “UK Customers.”
For existing users falling under the UK Customer category, the changes will take effect on October 8 at 8 AM UTC. Following this date, UK Customers will no longer be able to initiate new deposits, create new contracts, or increase their positions across all available products and services on the Bybit platform. However, they will retain the ability to reduce their positions, close existing positions, and withdraw their funds.
Bybit strongly urges UK Customers to take immediate action to manage and wind down their positions by January 8, 2024, at 8 AM UTC. After this designated deadline, any remaining open positions will be liquidated, with the resulting funds made available for withdrawal.
Disclaimer
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About The Author
Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via cindy@mpost.io with press pitches, announcements and interview opportunities.
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Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via cindy@mpost.io with press pitches, announcements and interview opportunities.
