Bybit expects to exit UK market

[ImThour]

Bybit expects to exit the UK market as new regulations loom.


https://www.theblock.co/post/251007/bybit-expects-to-exit-uk-market-as-new-regulations-loom
Author: Ryan Weeks

Bybit CEO Ben Zhou said that new marketing rules — that take effect on Oct. 8 — will likely mean Bybit exits the UK.


So why doesn't it affect any other crypto exchange and why Bybit only? Anyone from UK can help me understand this? 

[dzungmobile]

UK regulators are applying more and stricter regulations on cryptocurrency.

FCA introduces tough new rules for marketing cryptoassets

It began after the FTX fiasco.

Global cryptocurrency regulation report 2023

In the UK, the Government intends to make cryptoassets a regulated financial instrument.

You can download the full report https://www.pwc.com/gx/en/new-ventures/cryptocurrency-assets/pwc-global-crypto-regulation-report-2023.pdf and perhaps get more details around page #23.
I have yet read the full report!

[Oshosondy]

So why doesn't it affect any other crypto exchange and why Bybit only? Anyone from UK can help me understand this?  

Not that UK ask crypto exchanges to cease operation, but that they should comply with the new regulation that will start from October 8. If there is any exchange that do not agree, or that think that the regulation will affect them significantly, they may decide to stop providing crypto services to the citizens of the country anymore.

If you can remember the regulation that Canada made in the beginning of this year or so, the exchanges that could not cope with the new regulation of a prohibition on the part of the CTP in respect of clients buying or depositing stable coins through crypto contracts without the prior written consent of the CSA all left Canada. OKX, Biannce and Bybit all left Canada at different time when they know that they can not comply.

[Hamza2424]

Hmm, A few months back I think in March Bybit announced a similar kind of policy for the UK market that may be they are going to discontinue their services in the UK. Most of the centralized platforms feel comfortable providing their services using the UAE license, particularly since I think the regulatory policies now getting more strict. Moreover, I'm expecting a couple more similar kinds of announcements in the near future by few other market players.

You can download the full report https://www.pwc.com/gx/en/new-ventures/cryptocurrency-assets/pwc-global-crypto-regulation-report-2023.pdf and perhaps get more details around page #23.
I have yet read the full report!

Thaks buddy.. Lets have a look on it.

[avikz]

UK is going to implement the FATF travel rule for the crypto exchanges operating from their soil along with other regulations supervising strict KYC process and what not. Probably Bybit is not compliant to such requirements and that's why they choose to leave. It's always better to leave rather than fighting with the government system.

I honestly expect more crypto exchanges to move out of UK to some crypto friendly territory.

[logfiles]

I thought this already happened sometime back in 2021?

If I recall quite well, they even started blocking users from the UK. Was it just a bluff to please the regulators by announcing that they are exiting yet they did not?

1. Cryptocurrency exchange Bybit shuts up shop in UK in compliance with FCA ban article from Mar 05, 2021
2. Bybit shuts down in UK after regulator warning Article from Mar 10, 2021

[rat03gopoh]

I thought this already happened sometime back in 2021?

If I recall quite well, they even started blocking users from the UK. Was it just a bluff to please the regulators by announcing that they are exiting yet they did not?

Yeah, but OP's article explains that...

some exchanges have nonetheless been able to serve UK customers via reverse solicitation.

So, let's say previously bybit set up a service branch in the UK with permission so that they could also market products and services to UK residents. The new regulations (2021) remove their licenses and branches but do not restrict UK customers from coming to request service through any office outside UK jurisdiction.
The latest regulations now fully take customers as the object of protection, bybit no longer has the opportunity to serve UK users personally from any office jurisdiction.

[tabas]

I think we have seen that happen first with some other major exchange that has been out of the UK market because of the policies that's been made to them.

I honestly expect more crypto exchanges to move out of UK to some crypto friendly territory.

Me either, the same goes for its neighboring countries wherein they could implement the same rules towards the crypto exchanges and entirely for the crypto market as a whole together with the users. Such policies are really game changers especially if they're favorable to the community but if not, they'll have to see the effect of it and who knows if they will alter that decision later on.

[noorman0]

-snip-
Such policies are really game changers especially if they're favorable to the community but if not, they'll have to see the effect of it and who knows if they will alter that decision later on.

I see this does not bring more benefits in the long run. After all, crypto literally cannot be censored, especially in P2P use. I remember the case of Binance where they were able to serve Chinese users thanks to employee guidance, they actually grew in a country that was against crypto.

[mich]

Well now the Dubai based exchange it is saying it will not exit the UK market and is denying the other reports. I think people were thinking it would happen since in May it withdrew services in Canada.
 
'At Bybit, we consider the UK to be a highly important market for the advancement of crypto and blockchain technologies. Our commitment to this market is unwavering, and we intend to maintain our presence in the UK for the long term.'

https://bitcoinist.com/bybit-clarifies-position-on-reported-uk-exit/ 

[logfiles]

After all, crypto literally cannot be censored, especially in P2P use.

Maybe if you talk of Bitcoin and a few other OG coins, but you can't say the same about the likes of Tether, Tron, etc

Well now the Dubai based exchange it is saying it will not exit the UK market and is denying the other reports. I think people were thinking it would happen since in May it withdrew services in Canada.
 
'At Bybit, we consider the UK to be a highly important market for the advancement of crypto and blockchain technologies. Our commitment to this market is unwavering, and we intend to maintain our presence in the UK for the long term.'

https://bitcoinist.com/bybit-clarifies-position-on-reported-uk-exit/ 

What a turn of events. Let's wait and see if denying the allegations is just for the sake of public relations, but the truth is the Financial regulations won't be that friendly to them and as we know, it's always about numbers and profits. If there is a decline in revenue, they will have no choice but to pull out in the long run.

[bbc.reporter]

Did their government not declare that they wanted United Kingdom to be a cryptohub for Europe then the rest of the world? What has changed since this announcement? It might have only been larp similar to many things that were said and declared when we were in the bull market hehehe. Reality has presently come in.

[Rikafip]

Did their government not declare that they wanted United Kingdom to be a cryptohub for Europe then the rest of the world? What has changed since this announcement?

Wasn't that initially said in 2022 when market looked better and before FTX/Celsius fiasco?

I guess in their eyes they are doing exacvtly what they believe is needed to become a cryptohub, meaning loads of strict regulation. I mean, its unbelievable to me that no BATM operator managed to register with FCA and that just tells you how strict their regulation is.

[bbc.reporter]

@Rikafip. Strict regulations might only cause an opposite effect for a jurisdiction instead of being a cryptohub. Developers of the cryptospace can always stay anonymous and develop their platforms with a token to help attract people and create a community. Yes I know that there are scammers who use this model to scam, however, this relationship with community, token, developers and platform will not change whether there is strict regulations or not.

[Woodie]

If you can remember the regulation that Canada made in the beginning of this year or so, the exchanges that could not cope with the new regulation of a prohibition on the part of the CTP in respect of clients buying or depositing stable coins through crypto contracts without the prior written consent of the CSA all left Canada. OKX, Biannce and Bybit all left Canada at different time when they know that they can not comply.

Regulation proving to be a double-edged sword atm!!
One second we are all bullish with the coming of Bitcoin ETFs(regulated), then the next second regulation is breaking what crypto has built over the years...What do we really want?

And why are the affected users not voicing out their views on the harsh regulations at hand such that reputable exchanges are exiting their countries, are people forgetting what makes a government is the people of the country themselves and they have the power to make a change to bad laws ??

Perhaps we missed the memo that the citizens of Canada & the UK are okay with the regulations at hand  

[Rikafip]

@Rikafip. Strict regulations might only cause an opposite effect for a jurisdiction instead of being a cryptohub.

Yeah I know, that why I emphasized that part that maybe "they" belive that stricter regulation will help them become crypto hub, while reality is different and it will only make crypto companies to stay away from them and instead choose Dubai that is a real crypto hub.

In a somewhat related news, big UK bank Chase decided to block all crypto related payments, confirming what we already know that atmosphere there is far from ideal for crypto enthusiasts.

Source https://www.coindesk.com/policy/2023/09/26/chase-uk-to-block-crypto-payments-citing-fraud-scams/

[Altcoiner007]

So why doesn't it affect any other crypto exchange and why Bybit only? Anyone from UK can help me understand this?  

Not that UK ask crypto exchanges to cease operation, but that they should comply with the new regulation that will start from October 8. If there is any exchange that do not agree, or that think that the regulation will affect them significantly, they may decide to stop providing crypto services to the citizens of the country anymore.

If you can remember the regulation that Canada made in the beginning of this year or so, the exchanges that could not cope with the new regulation of a prohibition on the part of the CTP in respect of clients buying or depositing stable coins through crypto contracts without the prior written consent of the CSA all left Canada. OKX, Biannce and Bybit all left Canada at different time when they know that they can not comply.

It's going to be a really turbulent time for Bybit investors who are caught in-between the whole regulatory policy and Exchanges compliance Saga. It would simply be actionable to transfer assets immediately to other options
like Bitget, kraken & others available in the region that have shown their compliance and readiness to continue offering crypto service there.

[joniboini]

In a somewhat related news, big UK bank Chase decided to block all crypto related payments, confirming what we already know that atmosphere there is far from ideal for crypto enthusiasts.

I believe the key reason is that they don't want to get into a debate with their customers to compensate for their lost funds. At least they are quite explicit about it. I can see their point, but it is kind of weird that they don't apply the same thing to fiat scams. Are scams that different there?

They do cite some reports that crypto scams increase quickly in the UK. If this is one of the reasons why the law becomes stricter and pushes exchanges away, one has to wonder whether this will encourage scammers to be more active through the "black market' or not. At the very least P2P should still be a good option regardless of how the law change. CMIIW.

[bbc.reporter]

@Rikafip. Strict regulations might only cause an opposite effect for a jurisdiction instead of being a cryptohub.

Yeah I know, that why I emphasized that part that maybe "they" belive that stricter regulation will help them become crypto hub, while reality is different and it will only make crypto companies to stay away from them and instead choose Dubai that is a real crypto hub.

In a somewhat related news, big UK bank Chase decided to block all crypto related payments, confirming what we already know that atmosphere there is far from ideal for crypto enthusiasts.

Source https://www.coindesk.com/policy/2023/09/26/chase-uk-to-block-crypto-payments-citing-fraud-scams/

The skeptical me thinks this decision is the beginning of many to cause a cashflow shock on the cryptospace which will cause cryptocoins' prices to dump lower. There might be more announcements similar to this from other banks and in other jurisdictions this year. I think after this, they will implement strict regulations and AML rules to control how much inflows of fiat go to crypto.

I have always speculated that the government will support Tether and Circle to become their agents of control on how much inflows are allowed to enter the cryptospace.

[EarnOnVictor]

So why doesn't it affect any other crypto exchange and why Bybit only? Anyone from UK can help me understand this?

You don't have to be in the UK to get the needed information, once you are online, you might even have better info than those living there. However, I love your concern as the same regulation should have been meted out to all similar businesses in the UK, and the UK is not as dramatic as the US's SEC and regulator's palaver, so why would Bybit consider leaving, and also citing marketing?

Well, all these companies can't be trusted, not even the cited reasons might be the true reason at times, but there could be more to it. More regulation tends to tie their hands further and also exposes some bad deeds, which might be a reason for this.

Take for example, since we use the global branch of Bybit, my brother and I discovered months ago that the services offered to us are different despite being in the same country and fully completed our KYCs. For exchanging $70 BTC worth to USDT, we are being charged different rates to the point that his own was ridiculously low while I would have to part away with $2+ just for a $70 conversion. We could not believe it but it persisted.

Another one is the artificially made whipsaws on the chart that are non-existent elsewhere, but you can only know if you can compare charts with other Bybit users. They do this to scam people by routing them through different servers, and I'm not surprised since their CEO came from XM, a company that is also manipulative.