Crypto Exchange Bybit Contemplating UK Exit Due to Regulatory Changes – What’s Happening?

Digital asset exchange Bybit is carefully considering the possibility of departing from the UK market due to the implementation of new regulatory rules by the Financial Conduct Authority (FCA), set to take effect on October 8. 

Bybit CEO Ben Zhou emphasized the evolving regulatory landscape and the necessity for compliance, stating:

“We do see regulation becoming more strict. Most likely, we’ll have to retreat in many countries. I think the UK, we’ll have to exit very soon”.

The FCA’s new regulations are aimed at making crypto advertising “clear, fair, and not misleading,” with a focus on protecting regular investors from misleading information and inappropriate incentives. 

Starting from October 8, these rules will impose a ban on “refer a friend” bonuses and introduce a cool-off period for first-time investors, impacting how crypto companies engage with potential customers.

Bybit CEO Ben Zhou mentioned how these amendments have altered the landscape of financial appeal, potentially rendering reverse solicitation ineffective. 

He stated, 

“FCA has explicitly contacted all the major players — us, OKX, Binance, everyone — and asked what our plan is to deal with this new law. And the new law is that if you use English as a language, they will see you as trying to solicit their users, so you cannot claim that you are in reverse solicitation. Everyone is in trouble. So everyone is thinking of plans for how to deal with this new law”.

Industry-Wide Impact and Adaptive Strategies

Bybit isn’t the sole entity navigating the implications of these new rules. 

Other industry players, including exchanges like Luno, are also strategizing to comply with the evolving regulations. 

Bybit’s commitment to the UK market remains, despite these challenges. 

Zhou stated, “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”.

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. Meanwhile, we are dedicated to working…

— Bybit (@Bybit_Official) September 14, 2023

These regulatory changes will have a wide-ranging impact, potentially affecting centralized exchanges and adoption drives. 

Gabriel Shapiro from Delphi Labs noted the effect these regulations could have on centralized exchanges, causing a strain in the adoption drive. 

He added that it may be difficult for the FCA to enforce the rules among decentralized exchanges.

NB: Any Information provided is NOT FINANCIAL ADVICE. Do Your Research before making any Financial Decisions.