Bybit, a major crypto exchange operator that has current presence in the UK, has rejected earlier reports suggesting its imminent exit from the UK market due to forthcoming marketing regulations.
Ben Zhou, CEO of Bybit, clarified the company’s stance, stating that the firm is “in talks” with UK regulators to find solutions to the matter.
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. https://t.co/j3L4H8fG1t
— Ben Zhou (@benbybit) September 14, 2023
This statement contrasts with previous remarks Zhou made, where he indicated that the exchange might soon exit the UK and even referenced their recent departure from France.
The Financial Conduct Authority’s (FCA) stringent regulations set to take effect on October 8 have raised concerns among various crypto entities operating within the UK. The rules, aiming to bring transparency and accuracy to the marketing of crypto products, will introduce new measures such as a cooling-off period for first-time investors.
While Zhou’s initial comments hinted at Bybit’s potential withdrawal, his latest remarks indicate the firm’s commitment to staying. On September 14, Bybit reaffirmed its dedication to the UK market via a public statement on X (also linked above).
The new regulations will particularly challenge the long-practiced method of “reverse solicitation,” where exchanges could serve UK customers. Zhou highlighted this issue, citing that the FCA had contacted major players in the crypto world, including Bybit, OKX, and Binance.
“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,” Zhou said, adding that “[everyone] is in trouble. So everyone is thinking of plans for how to deal with this new law,”
Despite these circumstances, Bybit is actively exploring avenues to maintain compliance with UK regulations. In an effort to ensure the continuity of its services, the company is engaged in consultations, partnerships, and potential collaborations with local UK businesses. According to Zhou, these collaborations will ensure that Bybit remains compliant and continues its operations.
As the October deadline approaches, several major firms, including PayPal (for its crypto servics) and Luno (crypto exchange), have already announced temporary suspensions of their UK services, while others, like Bybit, are negotiating the path forward. The significance of this regulatory change is evident in the industry’s response, and its long-term effects on crypto operations in the UK are yet to be determined.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.