Bybit was rumored to have signaled a possible exit from the UK due to strict inbound marketing regulations that come into force on October 8.
Prominent crypto exchange Bybit has denied reports indicating the company’s intention to exit the United Kingdom before the country’s new financial rules come into force from October 8, 2023.
Earlier Wednesday, several media sites reported that Bybit found the UK’s new marketing rules for crypto companies to be “quite strict” and plans to withdraw its services from the island nation.
These reports claimed that the Dubai-based exchange was looking to close its market in several countries with strict regulations, including the United Kingdom.
Bybit Intends to Remain in the UK for The Long Term
A few hours after the abovementioned reports circulated, Bybit posted a statement on social media platform X, stating its commitment to the United Kingdom. The post stated the following:
“At Bybit, we consider the UK to be a highly important market for the advancement of crypto and blockchain technologies. Our commitment to this market is unwavering, and we intend to maintain our presence in the UK for the long term.”
Additionally, the exchange assured users of its willingness to work with UK regulators under the new financial promotion rules. Commenting on the situation, Bybit co-founder and CEO Ben Zhou stated the exchange’s commitment to regulatory compliance and that negotiations with UK authorities on the “best solution” for all parties are ongoing. Zhou further stated the following:
“Compliance is Bybit’s first priority, Regarding the UK new crypto regulation, we are in talks with the regulator to find the best solution moving forward, no final agreement has been made yet, we will keep our communities informed.”
Zhou highlighted the possible changes after October 8 and explained in the following terms:
“The FCA has contacted all the major players (us, OKX, Binance, everyone) and asked them what our plan is to address this new law. And the new law is that if you use English as a language, they will consider you as seeking to attract their users, so you cannot claim that you are making a reverse request.”
In early May, Bybit withdrew its services from Canada, citing certain regulatory changes. As now, the exchange expressed the importance of regulatory compliance for business operations in any country:
“UK consumers will have greater protection as crypto marketing must be clear, fair and not misleading, labeled with prominent warnings and must not encourage people to invest. These rules apply to companies wherever they are located globally.”
If Bybit cannot find a middle ground with UK financial regulators, it may take the same path and shut down its services nationwide. However, it is still too early to tell.
The New UK Financial Promotion Rules
In June, the United Kingdom’s Financial Conduct Authority introduced new financial marketing rules for crypto companies seeking to offer their services to its citizens in Great Britain. According to the FCA, these rules were designed to ensure that all UK customers understood the risk of cryptocurrency investments.
In July, the UK regulator wrote a letter to all crypto marketing companies highlighting the various routes for promoting assets under the incoming regime. Some routes included promotions by FCA authorized personnel or FCA registered crypto companies.
As stated above, these rules will come into effect from October 8, 2023. Some notable parts of these regulations include the abolition of “refer a friend” bonuses and the introduction of a “24-hour cooling-off period” for first-time investors.
By Leonardo Pérez