FCA Crypto Ban: Bybit suspends services to UK
2 min readTL;DR Breakdown
- UK FCA bans crypto derivatives.
- Bybit to end association with British users by March 31st.
- British crypto traders disagree with FCA’s decision.
The crypto industry suffered a major blow recently as the UK’s Financial Conduct Authority (FCA) announced a ban on trading crypto derivatives in the region. The FCA’s crypto ban prohibits the marketing, distribution or sake of exchange-traded notes (ETNs) and crypto derivatives. Bybit, a major player in the crypto derivatives industry have, following this ban, suspended all of its activities in the UK, as well as new registrations with phone numbers or IP addresses from the UK.
Reasons for the FCA’s crypto ban
The FCA had cited the potential harm crypto derivatives pose to retail customers, as well as extreme market volatility and insufficient understanding as reasons for the ban. While the ban seemed to have been coming since late last year, crypto traders in the region have opposed it. A poll conducted by the FCA revealed that about 97% of individuals disagree with this ban; regardless, the FCA went ahead with it. This crypto ban further supports calls that have been made over the regulation of the booming cryptocurrency industry.
What next for Bybit?
Bybit, formed in 2018 and headquartered in Singapore, are a major key player affected by the ban. Consequently, the crypto exchange organization announced the suspension of its service to UK-based individuals, and that UK citizens would have to close all opened positions. The organization is further expecting UK traders to have withdrawn all of their account balances by 8.00am UTC, 31st March, 2021.
The firm which currently has over 1 million registered clients on its platform is expected to continue its in-roads into other countries following this ban. Late last year, the company established a partnership with German football club, Borussia Dortmund: a multi-year partnership based on mutual brand outreach and marketing. Despite the ban, Bybit’s growing reach should expand, as the digital asset derivative company continue to explore other regions outside of the UK.
