Renowned cryptocurrency derivatives exchange Bybithas announced that it is suspending services in the U.K. ahead of the introduction of the new rules by the Financial Conduct Authority (FCA), the financial regulatory body in the country.
The Dubai-headquartered cryptocurrency exchange said in a recent announcement that due to recent U.K. regulatory changes, it could no longer continue to operate in the U.K.
The FCA’s new “Financial Promotion Rules for Crypto Assets” rules relate to strictly controlling marketing messages by crypto firms. This includes a ban on providing incentives to invest, as well as the display of a mandatory risk warning and associated risk summaries.
Bybit said that its suspension of services in the country will give it the opportunity to focus on how it would be able to best meet the regulations crafted by the financial authorities in the U.K.
Bybit also shared that starting on October 1, it would stop accepting new account applications from individuals residing in the United Kingdom as well as those identified as U.K. nationals.
As for old users or existing U.K. customers, services that have been previously provided to them will no longer be available starting Oct. 8.
What does this mean for me?
The crypto derivatives exchange will liquidate all open positions of its U.K. customers by Jan. 8, 2024, and all liquidated funds will be made available for customers' withdrawal.
Regulators around the world are scrambling to put in place meaningful guardrails for the conduct of crypto firms. It is expected that upcoming regulations will continue to alter the operating models of firms in the crypto industry.