June 19, 2024
Bybit likely to exit UK after new regulations

With new marketing regulations set to take effect in the United Kingdom next month, crypto exchange Bybit does not expect to be able to continue operating within the country.

The exchange’s CEO, Ben Zhou, claims that any crypto firm within UK borders could be held accountable for soliciting using only the English language.

Trouble with new marketing rules

As reported by The Block, Zhou said that regulation is becoming “more strict” and that exchanges may have to “retreat in many countries” – the UK being one of them.

The country’s Financial Conduct Authority (FCA) contacted Bybit along with rival exchanges like Binance and OKEx to verify how such companies will deal with its new law that seeks to prevent crypto firms from being allowed to serve UK citizens. How does she give?

As of October 8, such companies can continue to use reverse solicitation, whereby companies can serve UK customers as long as the business relationship is solely initiated by the customer. After that, it becomes much more difficult to grapple with the rules.

Zhou said, “The new law is that if you use English as a language, they will see you as trying to solicit your users, so you can’t claim you’re doing reverse solicitation.” Are.” “Everyone is in trouble. So everyone is thinking of plans on how to deal with this new law.”

The law also requires that any promotions for crypto companies be approved, and not inappropriately incentivize people to invest. Those not following the rules by next month could face an unlimited fine or up to two years in prison.

For Zhou, exiting the UK appears to be the easiest option. “We just moved out of France,” he said.

United Kingdom vs. United States

Earlier this year, the United Kingdom passed the Financial Services and Markets Bill, establishing crypto and stablecoins as regulated financial activities under the purview of the Financial Conduct Authority (FCA). The country’s Prime Minister Rishi Sunak has expressed interest in turning the UK into a digital asset hub.

The region’s strict regulations could ruin the dreams of US-based crypto firms looking to flee the UK from their home region’s hostile regulatory environment, he said. Coinbase CEO Brian Armstrong suggests measures if his company fails to gain legal clarity on crypto in the US

The Securities and Exchange Commission (SEC) has already initiated several lawsuits against companies like Coinbase, Kraken, and Binance for violating securities laws.

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source: cryptopotato.com

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