As new FCA regulations shape the cryptocurrency market, Bybit is considering withdrawing from the UK market. The crypto exchange is about to take this big step before the deadline on October 8.
Cryptocurrency exchange Bybit may withdraw from the UK
According to recent reports, Bybit is making plans to withdraw from the UK. Financial Conduct Authority (FCA) regulations, which will come into force on October 8, push the company to make this decision. Bybit CEO Ben Zhou stated that the new rules could cause the company to withdraw from the UK:
Compatibility is Bybit’s top priority. Regarding the new crypto regulation in the UK, we are in discussions with the regulator to find the best solution moving forward, no final agreement has been reached yet, we will keep our communities informed.
He wrote the following from the official X account on Bybit:
At Bybit, we see the UK as an extremely important market for the development of crypto and Blockchain technologies. Our commitment to this market remains unwavering and we intend to maintain our presence in the UK for the long term. In the meantime, we are committed to working collaboratively with regulators on the new law to ensure the industry develops responsibly and safely.
The FCA’s new rules are causing huge fluctuations in the cryptocurrency industry. FCA contacted major players such as OKX and Binance. Luno also decided to restrict some services two days before the new regulations came into force.
FCA’s impact on market dynamics
The UK CMB, the FCA, aims to redefine financial demands in the cryptocurrency industry. It particularly poses a challenge to companies that evade previous regulations by using the ‘reverse demand’ strategy. It also aims to protect average investors by ensuring coin/token advertisements are “clear, fair and not misleading.”
The new guidelines will also ban “bring a friend” bonuses and introduce a “cooling off period” for new investors. Gabriel Shapiro from Delphi Labs states that these changes could negatively affect centralized exchanges. Meanwhile, the FCA may have difficulties enforcing these rules on decentralized exchanges.
As the October 8 deadline approaches, cryptocurrency companies such as Bybit are evaluating their options. Meanwhile, the FCA insists on policies that will hinder market growth, while underlining that its priorities are investor safety and market transparency. The most likely step for Bybit is to move away from the UK market altogether. As new regulations emerge, the cryptocurrency industry, especially in the UK, is preparing for major operational changes.
FCA calls for compliance
In July, the FCA said it had written to domestic and foreign firms marketing cryptocurrencies to customers in the UK, demanding they comply with incoming crypto advertising compliance rules or risk being imprisoned for up to 2 years. cryptokoin.com As we reported, these rules pointed to a shrinking market share for the meme token.
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