Bybit to Leave UK Due to New Regulations

Sep 14, 2023

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Bybit, a big crypto exchange, plans to leave the United Kingdom because of new rules coming soon.

Why Bybit Is Leaving?

The CEO of Bybit, Ben Zhou, that stricter regulations are causing them to leave many countries. The UK is one of those countries. Bybit recently left France due to similar reasons.

Starting on October 8, the Financial Conduct Authority (FCA) will put new rules into action. These rules aim to make it clear and accurate when companies advertise crypto products.

CEO Ben Zhou: “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. We recently exited France.”

— CO NEWS (@coinotagen)

What the CEO Says

Zhou mentioned that these new rules will change how companies can approach customers. Although the UK banned crypto derivative products in 2021, some companies still served UK customers using “reverse solicitation.” But from October 8, that might not work anymore.
Bybit may decide to completely stop doing business in the UK as a result.

The FCA’s Approach

The FCA contacted major players like Bybit, OKX, and Binance. They asked how these companies plan to deal with the new law. According to Zhou, if a company uses English to communicate, the FCA could see it as trying to attract UK users. So, claiming “reverse solicitation” might not work. Many companies are in trouble and trying to figure out what to do.

A Broad Set of Rules

George Morris, a partner at Simmons & Simmons, explained that these promotion rules have been around for securities firms for a long time. Now, they are expanding to include crypto firms. These rules are complicated and cover a lot of ground. Starting from October 8, even having a website accessible to UK users might be seen as advertising. These rules don’t just affect UK firms; anyone with a website accessible in the UK has to follow them.

Bybit’s Background

Bybit started in 2018 as a derivatives-focused exchange. In recent years, they added more products, including spot trading. However, derivatives are still a big part of their business. Currently, Bybit has about a 23% share of open interest in bitcoin futures, according to The Block Research’s data.

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Your go-to source for all things crypto, fintech, and financial regulations. With a passion for staying at the forefront of the digital financial revolution, I'm here to simplify complex topics and keep you informed.