Prominent crypto exchange Bybit has denied reports stating the company’s intention to exit the United Kingdom ahead of the nation’s new financial rules expected to go into effect from October 8th, 2023.
Bybit Intends To Stay In The UK For The Long Term
Earlier Wednesday, various media sites reported that Bybit found the new UK marketing rules for crypto firms “quite strict” and plans to withdraw its services from the island nation.
These reports claimed the Dubai-based exchange was looking to shut down its market in various countries with stringent regulations, including the UK.
However, a few hours after the circulation of these reports, Bybit released a statement on social media platform X, stating its commitment to the UK.
The statement read:
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.
Furthermore, the exchange assured users of its willingness to work with the UK regulators under the new financial promotion rules.
Also commenting on the situation, Bybit’s co-founder and CEO, Ben Zhou, stated the exchange’s commitment to regulatory compliance and that negotiations with the UK authorities on the “best solution” for all parties are ongoing. Zhou said:
Compliance is Bybit 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.
Earlier in May, Bybit withdrew its services from Canada, citing certain regulatory developments. Like now, the exchange expressed the importance of regulatory compliance for business operations in any country.
If Bybit cannot find a middle ground with the UK financial regulators, it may take the same route, closing down its services nationwide. However, it is still too early to tell.
The New UK Financial Promotion Rules
In June, the UK’s Financial Conduct Authority introduced new financial marketing rules for crypto firms that intend to offer their services to its citizens of Great Britain. According to the FCA, these rules were designed to ensure that all UK customers understood the risk of crypto investments.
In July, the UK regulator wrote a letter to all crypto marketing firms highlighting the various routes for asset promotion under the incoming regime. Some routes included promotions by FCA-authorized personnel or crypto companies registered with the FCA.
As earlier stated, these rules will become active from October 8, 2023. Some notable parts of these regulations include abolishing “refer a friend” bonuses and introducing a “24-hour cooling period” for first-time investors.
Total crypto market cap valued at $1.036 trillion on the hourly chart | Source: TOTAL chart on Tradingview.com
Featured image from Great British Mag, chart from Tradingview