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- The crypto exchange is halting UK operations from October 8.
- Users will only be able to reduce or withdraw their funds after that.
- Co-founder and CEO Ben Zhou says the new laws on financial promotions are the cause.
Crypto exchange Bybit is halting its UK operations as new laws on financial promotions kick in.
From October 8, Bybit users in the UK will not be able to use the platform unless they withdraw their funds and close their trading positions.
“We must suspend offering our services to UK citizens while we reconsider our approach to this important market,” Ben Zhou, co-founder and CEO of Bybit, said in a statement shared with DL News.
From that same date, crypto firms targeting the UK market will need to be authorised, or else land behind bars with heavy fines. The Financial Conduct Authority, which oversees crypto firms, has granted firms an additional three months to comply with the rules with a deadline on January 8, 2024.
The main issue for Bybit, according to Zhou, is that the FCA sees promotions in English as a signal of targeting the UK’s population.
“Therefore, to comply, crypto businesses are faced with the choice of either exiting the UK market entirely or working with a third-party civilian company to gain approval for every piece of English content they produce, which could potentially disrupt their operations,” he said.
PayPal and crypto exchange Luno have also halted some of their crypto operations in the UK due to the stricter laws on advertising.
PayPal will stop crypto sales in the UK until 2024 to figure out how to work with the stricter rules coming into force.