Bybit, one of the leading cryptocurrency exchanges, made a significant announcement on September 14.
Contrary to earlier reports suggesting a possible exit from the United Kingdom due to stringent regulatory changes, the company declared its intention to continue its operations in the UK market.
In a statement on Twitter, a company spokesperson emphasized the UK’s importance in advancing crypto and blockchain technologies.
They reassured the crypto community that Bybit remains dedicated to the UK market for the long term, stating, “Our commitment to this market is unwavering.”
Ben Zhou, the CEO of Bybit, also chimed in on the matter, confirming the company’s ongoing discussions with regulators to find a mutually agreeable solution. He stated definitively that “leaving the U.K. is not part of our current strategy.”
The earlier reports suggesting Bybit’s potential exit from the UK were rooted in concerns about impending regulations that restrict how cryptocurrency companies can advertise and promote their services.
Zhou had previously mentioned that the new regulations were exceptionally broad and posed significant challenges.
Specifically, he highlighted the issue of using English language, stating that it could be interpreted as an attempt to solicit UK users, thus potentially running afoul of the regulations.
It’s important to note that Zhou’s interpretation of the regulations is his own, but the rules in question are indeed quite stringent.
In addition to prohibiting referral programs and mandating prominent risk warnings, these regulations open the door to severe penalties, including imprisonment and substantial fines.
The regulatory changes are not exclusive to Bybit; they have implications for the entire cryptocurrency industry.
The UK’s Financial Conduct Authority (FCA) has been in contact with numerous crypto-related businesses, including giants like OKX and Binance, although these companies have not issued direct statements on the matter.
In response to the regulatory landscape, some companies have already announced temporary withdrawals from the UK market.
PayPal disclosed its decision to pause UK services until 2024 in August, while Luno announced a pause in its UK services with no specified return date just a few days ago.
Bybit holds a prominent position in the cryptocurrency exchange landscape, ranking among the largest exchanges by trading volume.
Over the past 24 hours alone, it facilitated cryptocurrency transactions exceeding $820 million, according to CoinGecko data.
By addressing the regulatory changes publicly, Bybit has joined the ranks of significant players in the industry commenting on the evolving regulatory environment.