Bybit’s approach is grounded in cooperation and compliance, seeking to create a harmonious relationship with UK regulators and authorities.
Bybit, a prominent crypto exchange remains steadfast in its commitment to stay in the United Kingdom with CEO Ben Zhou reiterating that “leaving the UK is not part of our current strategy”.
The New Regulatory Landscape in the UK
Crypto has been the subject of intense scrutiny by regulatory authorities around the world. The UK is no exception, and its Financial Conduct Authority (FCA) has been actively working to establish a regulatory framework for the crypto industry. One notable change on the horizon is the overhaul of rules governing financial promotions, which will take effect from October 8.
The FCA’s financial promotions rules will encompass crypto companies, potentially impacting their ability to reach local customers. To promote transparency and protect consumers, these rules necessitate that any company engaging with UK clients must be registered or authorized by the FCA.
The FCA’s new rules include a ban on crypto derivatives and Exchange-Traded Notes (ETNs) for retail consumers. These derivatives and ETNs are known for their high volatility and risk, and the FCA believes that banning them will protect retail investors from potentially catastrophic losses.
The enforcement of these rules has already influenced some companies, including Luno and American payments giant PayPal Holdings Inc (NASDAQ: PYPL) which extended its crypto trading services to the country a few years back to suspend specific crypto operations in the UK. The challenge lies in aligning their operations with the new regulations without compromising their service quality or withdrawing from the market altogether.
While this move is seen as a positive step towards reducing the risk of consumer harm, it has also raised concerns within the industry about the potential impact on crypto businesses.
Bybit Exchange’s Ongoing Commitment to Stay in the UK
Bybit’s initial comment about potentially withdrawing from the UK stirred discussions, but CEO Ben Zhou has since clarified the exchange’s stance. The exchange is determined to navigate these regulatory changes while staying operational in the country.
Zhou emphasized the exchange’s proactive engagement with regulators, underlining its efforts to identify the best path forward within the regulatory framework. Zhou stated, “There are still several avenues available for crypto exchanges to achieve compliance with UK regulators in the future, and we are actively exploring all options for this market.”
Bybit’s approach is grounded in cooperation and compliance, seeking to create a harmonious relationship with UK regulators and authorities. Such collaborations can help ensure the exchange’s full compliance with the evolving regulatory landscape.
These partnerships and consultations are strategic moves designed to align Bybit’s operations with local expectations and regulatory requirements.
By actively engaging with local businesses and assessing potential collaborations, Bybit aims to secure its position in the UK market and provide UK customers with a compliant and trustworthy platform for their cryptocurrency needs.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.