Bybit considers exiting the UK market in response to new regulations.

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Impact of New Regulations on Bybit

According to The Block, Bybit may exit the UK market in response to new impending market regulations.

This move comes as a response to new regulations by the Financial Conduct Authority (FCA) set to take effect in the coming weeks, which include a cooling-off period for first-time investors, allowing for a chance to reconsider investments to enhance transparency and accuracy in the sale of crypto products.

Ben Zhou, co-founder and CEO of Bybit, stated that these new regulations will have a significant impact on their business operations and could potentially sever ties with the UK market entirely.

Ben Zhou also mentioned on Twitter that compliance is Bybit's top priority, and discussions with regulatory bodies regarding the new crypto regulations in the UK are ongoing to find the best way forward, with no final agreement reached yet.

New Regulations to Significantly Impact Crypto Companies

For the crypto industry, the new regulations by the FCA represent a significant turning point. George Morris, partner at law firm Simmons & Simmons, pointed out that marketing regulations have primarily applied to securities companies in the past few decades, but these regulations now extend to a broader scope, including crypto companies.

This forces crypto businesses to navigate extremely complex and wide-ranging regulatory requirements, where even a website that allows UK customers access could be considered a marketing activity and fall under the purview of the new regulations.

Strict Crypto Regulation in the UK: Overview

DeFi Tax Reform! UK Tax Authority opens consultation on taxing DeFi lending and staking

End of Referral Master? Rejecting the cryptocurrency MLM culture, UK FCA to ban referral bonuses, anti-inflation arguments

UK Financial Services and Markets Act FSMB officially in effect, to strengthen crypto regulation, supporting secure adoption in the UK

Attention to promoting cryptocurrencies in the UK! Criminal liability for unauthorized individuals or non-FCA registered personnel

Crypto Memes Alarm! UK regulatory agency: Memes may be considered as investment marketing tactics

Enhanced Regulation! UK FCA: New scrutiny rules to be implemented for financial ads, companies must apply within the deadline