Bybit Exits The UK Market Amid Adopted Crypto Marketing Standards
The local regulator this week adopted a new standard regarding the marketing of cryptocurrencies, and today issued a final warning to companies that have not yet answered the regulator's questions about their activities. As a consequence, many major cryptocurrency companies are starting to leave the UK market. Among them is Bybit.
The British regulator said in an open letter that only 24 out of 150+ companies responded to a survey sent out to them related to the new rules, which come into effect on October 8. The rules severely restrict the dissemination of information about cryptocurrency companies' financial offerings. The standards primarily target unregistered foreign crypto firms and prohibit the advertising of crypto products to the British public. The regulator is demanding immediate cessation of operations, and a two-year prison sentence and fine will follow if the new standard is breached.
After the introduction of the standard by the regulator, it was rumored that a major crypto exchange Bybit plans to leave the UK market. Today, these rumors were confirmed, as the exchange reported on its blog.
On October 1, Bybit will stop registering new accounts, and from October 8, UK users will not be able to deposit or withdraw funds or use any other exchange services. Users are advised to withdraw their funds. Bybit customers must wind down their remaining positions by January 8.
Bybit hopes to one day return to the UK market, saying it will use the exit to make every effort to comply with the UK regulator's rules in the future.
It is also known that other exchanges, OKX and Binance, are revising their strategies in accordance with the new standards. The adopted standard causes misunderstandings among cryptocurrency companies, as the mere presence of a website or the use of the English language can be considered as attracting British customers.
