Crypto derivative platform Bybit announced in an update to its customers that it had ceased to provide all services to U.K. customers. These users have until March 31 to close all their positions and withdraw all their balances. Thereafter, users in the U.K. “will be restricted from accessing or performing any trading activities on the crypto platform. The Finance Conduct Authority had earlier banned crypto derivatives in the country.
ByBit promises to seek dialogue with regulators.
The crypto derivatives platform has claimed that it will seek dialogue with regulators to explore other future options. “We hope to be able to earn the privilege to serve you again in the future,” the company stated. Based in Singapore but registered in the British Virgin Islands, Bybit is considered the third largest futures exchange regarding open interest globally. The company only ranks behind Binance and OKEx, with over $2 billion in open interest on its platform. However, according to the U.K.’s financial regulator FCA, Bybit has been operating despite the regulator’s directive.
The crypto derivative ban came into effect on January 6, 2021.
As reported earlier, the Financial Conduct Authority had banned cryptocurrency derivative sales to retail investors in October 2020, and subsequently, the ban came into effect on January 6, 2021. Nevertheless, Bybit has been operating all through, which led the FCA to issue a public warning against the firm a week before it decided to shut down operations.’ The warning stated, “we believe this firm has been providing financial services or products in the U.K. without our authorization.” “This firm is not authorized by us and is targeting people in the U.K. Based upon information we hold, we believe it is carrying on regulated activities which require an authorization,” it concluded.