ByBit Says Goodbye To The United Kingdom• September 22, 2023 11:35 am • Comments
As the crypto winter drags on, digital assets are facing increasing regulatory pressures from centralized governments desperate to remain relevant in the 21st century.
Centralized exchanges like Binance are under fire everywhere, and today we are seeing yet another centralized exchange announce its exit from a country.
ByBit is facing increased legal scrutiny from the United Kingdom’s Financial Conduct Authority and has decided to pause its services indefinitely in the Western European country due to untenable regulations.
At the time of this writing, there are no plans or announcements to unpause services in the United Kingdom, though the wording of the announcement did not exclude that possibility in the future.
The platform announced on Friday: “Due to recent UK regulatory changes, Bybit will suspend its services in the UK. New account applications cease from Oct 1, 2023, 8 AM UTC. Existing UK users, please manage your positions before Jan 8, 2024, 8 AM UTC.”
Due to recent UK regulatory changes, Bybit will suspend its services in the UK. New account applications cease from Oct 1, 2023, 8AM UTC. Existing UK users, please manage your positions before Jan 8, 2024, 8AM UTC. #Bybit
— Bybit (@Bybit_Official) September 22, 2023
Users of the platform decried the recent move on behalf of the Financial Conduct Authority of the United Kingdom as draconian and tyrannical.
It looks like my association with @Bybit_Official since 2018 is ending.
— Market Mobster (@MarketMobsterUK) September 22, 2023
Blockworks had more on the story:
In the Sept. 21 letter, the FCA cited “poor engagement from many unregistered, overseas crypto asset firms who have UK customers…” It stated that some had “refused to engage with the FCA”, despite the authority’s outreach attempts. Out of over 150 firms approached, only about 24 responded to a survey.
Other members of the crypto community provided alternatives to ByBit for customers affected by the forced exit of the exchange.
Bybit has suspended services in the UK. If you're looking for alternatives to trade on, then consider using their DEX; APEX.
Very similar UX & fees, so transition should be smooth. No KYC & self-custody trading.
— The Wolf (@WolfOfPoloniex) September 22, 2023
— EliZ¥ (@eliz883) September 22, 2023
Bybit is not the only crypto firm suspending U.K. operations in response to the new rules.
Payments giant PayPal said last month that it would temporarily pause its crypto services in the country until next year.
Luno, which is owned by CoinDesk parent Digital Currency Group, has also said it would prevent some U.K. clients from investing further through its exchange.
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