Bybit to stay in UK despite looming curbs on crypto promotion

abdelaziz Fathi

Crypto exchange Bybit is actively exploring options to continue operating in the U.K. despite impending changes in financial promotions rules that are set to come into effect next month.

These new regulations will extend to crypto companies and impact their ability to engage with local customers, requiring them to be registered or authorized by the Financial Conduct Authority when reaching out to U.K. clients.

Some firms, like Luno and PayPal, have already adjusted their crypto operations in response to these changes. Bybit’s CEO, Ben Zhou, stated that the exchange is in discussions with regulators to determine the most suitable approach going forward.

Earlier in May, Bybit informed its Canadian users that it would cease operations and no longer be accepting new customers effective May 31, 2023.  The industry’s giant seemingly opted to pull out of Canada, rather than comply with securities law or face regulatory scrutiny.

“Leaving the U.K. is not part of our current strategy. There are still several avenues available for crypto exchanges to achieve compliance with U.K. regulators in the future, and we are actively exploring all options for this market. We are engaged in partnerships and consultations with local businesses, assessing potential collaborations with entities in the U.K., which will enable us to continue our operations in full compliance,” Ben Zhou added.

In light of these regulatory changes, crypto forms are adjusting their offerings in the UK to stay in line with the shifting landscape of rules and consumer safeguards.

Earlier in June, the UK introduced new advertising rules for firms marketing crypto assets to consumers. Citing concern over investor protection, the FCA watchdog suggests that customers should take a brief period to educate themselves further about the risks involved.

Under the new rules, the financial watchdog introduced a 24-hour “cooling-off” period specifically for first-time investors. This pause allows investors to take a step back and reconsider their decision before proceeding with this type of risky investment. Additionally, the practice of offering ‘refer a friend’ bonuses will be prohibited.

The new regulations also require firms promoting crypto products or services to include a clear risk warning in their promotions and verify that individuals have the necessary knowledge and experience to invest in cryptocurrencies.

Read this next

Digital Assets

Swiss regulator shuts down CoinShares’ partially-owned FlowBank

Switzerland’s financial regulator, FINMA, has closed FlowBank SA and placed it into bankruptcy due to severe breaches of capital requirements and other supervisory laws. This follows a series of enforcement actions against the bank that began in October 2021.

blockdag

Presale Power Players: 5 Crypto Presales Primed for Success in 2024 According to Experts

Unlock the potential of the best presale cryptos available now. See why experts recommend BlockDAG, Bitbot, eTukTuk, 99Bitcoins Token, and ButtChain.

Executive Moves

Paxos axes 65 jobs, cuts headcount to below 300

Stablecoin issuer Paxos has laid off 65 employees, equating to 20% of its staff, despite maintaining a robust financial standing.

Institutional FX

US sanctions trigger major shifts in Russian FX market, says Sergey Romanchuk

The U.S. sanctions imposed on June 12 against the Moscow Exchange and its clearing entity, the National Clearing Center (NCC), are set to cause massive disruptions in the Russian currency market, according to FX industry veteran Sergey Romanchuk.

blockdag

BlockDAG’s X1 Miner App Beta Sparks $49.2M Presale Rise; Uniswap & XRP Whales Getting Involved?

Experience BlockDAG’s meteoric 1120% presale rise, Uniswap’s UNI climbing 18%, and Ripple’s XRP anticipating ETF approval. Explore their latest breakthroughs!

Market News, Tech and Fundamental, Technical Analysis

GBPUSD Technical Analysis Report 13 June, 2024

GBPUSD currency pair can be expected to fall further toward the next support level 1.2700, which has been reversing the price from last month.

Institutional FX

U.S. sanctions halt dollar and euro trading on Moscow Exchange

New U.S. sanctions against Russia have led to the immediate suspension of trading in dollars and euros on the Moscow Exchange (MOEX), the country’s largest exchange group.

Digital Assets

MicroStrategy raises $500M to buy more Bitcoin, now holds 214,400 BTC

MicroStrategy, the largest corporate investor in bitcoin, plans to raise $500 million through a convertible senior note offering, with an option for an additional $75 million.

Crypto Insider

7 Best Upcoming New Crypto Coins : From  World of Virtual and Augmented Reality

In 2024, all new buyers want to know about the best upcoming new crypto coins. For those who have invested before, you know that there are often “hidden gems” that can give you huge returns on your money.

<