Bybit, a crypto exchange, might halt operations in the UK due to upcoming Financial Conduct Authority (FCA) regulations from Oct. 8. In a tweet on Sep. 14, CEO Ben Zhou expressed concerns about meeting strict compliance requirements.
The FCA’s updated regulations, including cooling-off periods for new investors and stricter marketing rules, aim to enhance transparency in crypto product advertising.
Zhou noted that these changes would impact how exchanges like Bybit engage with consumers.
Previously, some exchanges used “reverse solicitation” to avoid UK rules. However, upcoming FCA regulations explicitly address this practice, closing regulatory gaps.
Bybit isn’t the only exchange affected by the upcoming regulatory changes.
The FCA has been in talks with other major players like Binance and OKX. Luno, another exchange, has already restricted some services ahead of the Oct. 8 deadline.
Experts believe these regulations could impact centralized platforms and potentially slow down crypto adoption.
As the deadline approaches, crypto firms, including Bybit, are reviewing their plans.
The industry is preparing for significant changes in the UK. These new laws aim to enhance investor safety and market transparency. However, their exact impact on the crypto sector remains uncertain.