The derivatives-only cryptocurrency trading platform, ByBit, is entering the spot crypto market. The new spot exchange services would support BTCUSDT, ETHUSDT, XRPUSDT, and EOSUSDT trading pairs to begin with, with the biggest surprise being XRP. The expansion has occurred as the result of a series of regulatory actions against the crypto firm. ByBit’s derivatives business has faced warnings from regulators across countries.
ByBit received a regulatory warning from FCA.
The first wave of regulators hit the derivatives crypto exchange ByBit during the initial month of 2021, when the U.K.’s financial watchdog, the Financial Conduct Authority’s announced a nationwide ban on cryptocurrency derivatives, claiming that the crypto assets being traded and exchanged are financially at high risk, especially for retail consumers. Following the ban, ByBit announced in March that it would be shutting down its operations in the U.K., and users are advised to close accounts and withdraw held assets. Earlier, Canada’s Ontario Securities Commission (OSC) accused ByBit of functioning illegally in the region.
Crypto exchanges face regulatory issues.
ByBit announced in a blog post, “If you are either a U.K. resident or citizen, please close all your positions and withdraw all account balances by 8 a.m. UTC [3 a.m. ET], March 31, 2021. Thereafter, customers located in or are residents of the U.K. will be restricted from accessing or performing any trading activities on Bybit.” Following its exit from the U.K. because of the FCA’s demands, the derivatives exchange found itself in another regulatory upheaval last month in Canada’s Ontario province. Ontario Securities Commission accused ByBit of functioning illegally in the region as an unlicensed crypto trade and exchange organization. As reported earlier, Binance also announced to suspend the withdrawal of its U.K’s customers.