According to a recent report, Bybit is contemplating a complete exit from the UK market as the Financial Conduct Authority (FCA) prepares to implement new marketing rules on October 8. Bybit CEO Ben Zhou has expressed concerns that these regulations may leave the company with no choice but to withdraw from the UK market entirely.
The impact of these rules extends beyond Bybit, causing ripples throughout the broader crypto market. The FCA has reached out to other major players in the industry, including OKX and Binance, to discuss their compliance plans. Additionally, Luno, another cryptocurrency exchange, has announced plans to restrict specific services in anticipation of the new regulations.
The FCA’s upcoming laws aim to redefine financial solicitation within the crypto space. One notable change is the increased difficulty for companies to engage in “reverse solicitation,” a tactic previously used to navigate past regulations. The FCA also seeks to protect average investors by ensuring that crypto advertising is clear, fair, and not misleading.
The new guidelines will also prohibit “refer a friend” bonuses and introduce a cooling-off period for new investors. Industry experts, such as Gabriel Shapiro of Delphi Labs, suggest that these changes could particularly impact centralized exchanges, potentially hindering the rate of crypto adoption. However, enforcing these rules on decentralized exchanges poses challenges for the FCA.
While some stakeholders argue that the new policies may stifle market growth, the FCA maintains that their primary objective is investor safety and market transparency. As the October 8 deadline approaches, crypto firms like Bybit are carefully evaluating their options.
For Bybit, exiting the UK market entirely appears to be the most likely course of action. The crypto industry as a whole is preparing for significant operational shifts, especially within the UK, as these new regulations unfold.