There's no Bybit UK ban, but the crypto exchange has announced that it will be leaving the country after the lawmakers made a new rule. They made the announcement of their proactive decision to leave the United Kingdom due to a new rule that every crypto exchange must abide by.
What is the New Rule?
According to lawmakers in the United Kingdom, they are keen to see the protection of customers and investors against crypto exchanges. So, some crypto exchanges often use false advertisements to attract new customers. This is what the UK government is trying to stop by the addition of new laws.
These new rules were made by the country’s financial regulator, the Financial Conduct Authority. According to them, "From this October, crypto firms must market to UK consumers clearly, fairly and honestly. And they must provide risk warnings people understand. As a proportionate regulator, we’re giving firms that apply a little more time to get the other reforms requiring technology and business change right. We'll maintain our close eye on firms during this extended implementation period." Apparently, this is what made the Bybit crypto exchange to seek an escape route from the United Kingdom.
Bybit Announces Suspension of Services in the UK
Days after this new rule was made, Bybit Exchange announced they would leave the country for more favorable locations. In a blog post, the crypto exchange said they are always keen on keeping the compliance rules and regulations of each country they operate in. However, the new rule from the country’s financial regulator, the Financial Conduct Authority, was above the top for them. Hence, they will be leaving the country.
"It has always been Bybit's primary objective to operate our business in compliance with all relevant rules and regulations in the UK. In light of the UK 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 suspension will allow the company to focus its efforts and resources being able to best meet the regulations outlined by the UK authorities in the future," Bybit said.
What Next For Bybit Users?
Bybit provided a step-by-step timeline of what will happen after implementing the new development in their crypto exchange. According to them, they will no longer be accepting account openings and operations from new users in the United Kingdom. However, this will be implemented starting from October 1, 2023, at 8 AM UTC. This applies to both those residing in the United Kingdom and the nationals. For the already existing users, they will no longer have the option to create new contracts, make deposits, or increase any of their existing positions. Apparently, Bybit Exchange is urging their customers to come and withdraw their funds to avoid immediate liquidation.
"UK Customers who are implicated by these measures are strongly encouraged to take action by January 8, 2024, 8AM UTC to manage and wind down their positions. After the stipulated deadline, their open positions will be liquidated, and the liquidation funds will be available for withdrawal," Bybit added.