Digital assets exchange Bybit, which cited early this month that new marketing rules in the UK would hinder its operations, will no longer accept new account applications from UK residents, starting October 1.
The new rules, announced by the UK’s Financial Conduct Authority (FCA), apply to all crypto promotions including the ban on incentives like referral bonuses. The regulator said that the rules will come into effect from Oct. 8.
To stay on the right side of FCA’s guidelines, crypto exchange Bybit will suspend its services in the UK market starting October 8. “Bybit has made a choice to embrace the regulation proactively,” the platform said in a press release.
Existing UK users “will no longer be able to make any new deposits, create new contracts, or increase any of their existing positions for all products and services” from October 8, it added.
Further, UK customers are encouraged to wind down their positions by January 8, 2024. Post the deadline, open positions will be liquidated, the company noted.
FCA’s action to scrutinize crypto businesses to comply with its new marketing rule is “clear, fair and honest,” said Lucy Castledine, Director of Consumer Investments at FCA.
“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,” she said at the time.
The move comes as regulators worldwide are concerned by the failure of global crypto businesses such as FTX and the tightening of rules denote increased regulatory oversight over crypto firms.
Bybit confirmed that it would continue to grow in global markets and its “mission to deliver next level trading experiences to all crypto believers with the necessary guardrails in place.”
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