Cryptocurrency exchange Bybit is leaving the UK market due to upcoming stricter marketing regulations by the Financial Conduct Authority (FCA), effective October 8.
The regulations aim to improve transparency and accuracy in promoting cryptocurrency products and include a cooling-off period for new investors.
Bybit’s CEO mentioned that these regulations have led the company to scale back operations in multiple countries, including France.
The impending FCA regulations are poised to reshape the way cryptocurrency exchanges engage with potential customers. Despite the UK’s ban on cryptocurrency derivatives since 2021, exchanges like Bybit have continued to serve UK customers using a method known as “reverse solicitation.”
The FCA’s new rules could render the “reverse solicitation” method, used by exchanges to serve UK customers, ineffective.
Notably, the new law introduces a significant change: if marketing materials are presented in English, regulators may interpret this as an active solicitation.
This move raises questions about how other crypto exchanges will navigate stricter regulations globally, potentially impacting the industry’s growth and operations.
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