Bybit, a leading crypto exchange, anticipates its imminent exit from the United Kingdom market.
The initiative comes in response to the forthcoming stringent marketing rules in the UK, set to take effect on October 8.
Bybit Leaves the UK Due to Tight Regulations
Bybit’s decision to leave the UK mirrors the ongoing challenges many crypto exchanges face in adjusting to tighter regulatory scrutiny.
CEO and co-founder of Bybit, Ben Zhou, underscored the intensifying regulatory climate, stating:
“Compliance is Bybit first priority. Regarding the UK new crypto regulation, we are in talks with the regulator to find the best solution moving forward.”
He elaborated on the recent Bybit’s exit from France and Canada and foresaw a similar scenario in the UK soon. The decision stems from the impending enforcement of rules by the Financial Conduct Authority (FCA). The federal agency aims to enhance transparency and accuracy in crypto marketing.
“UK consumers will have much greater protection as crypto asset firms’ marketing must be ‘clear, fair and not misleading,’ labelled with prominent risk warnings and must not inappropriately incentivize people to invest. These rules apply to firms wherever they are based globally and help strengthen how people are protected from the high risks associated with crypto assets,” the FCA noted.
Despite the UK’s ban on crypto derivatives products since 2021, exchanges managed to cater to UK customers through a loophole called reverse solicitation.
However, Zhou highlighted the potential changes post-October 8, stating:
“FCA has explicitly contacted all the major players — us, OKX, Binance, everyone — and asked what our plan is to deal with this new law. And the new law is that if you use English as a language, they will see you as trying to solicit their users, so you cannot claim that you are in reverse solicitation. Everyone is in trouble. So everyone is thinking of plans for how to deal with this new law.”
Considering the depth of these changes, Bybit’s likely route will be a complete disengagement from the UK market, as emphasized by Zhou.
“Most likely, we’ll have to retreat in many countries. I think the UK — we’ll have to exit very soon,” Zhou concluded.
Bybit, established in 2018, initially focused on derivatives but has since expanded its offerings. It claims a 23% share in open interest across Bitcoin futures, showcasing its influence in the crypto industry.
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.