Bybit has announced that it will stop providing services to customers from the UK. The company is shutting down its UK operations following the crypto derivatives ban imposed by the Financial Conduct Authority (FCA).
"If you are a UK resident or citizen, close all your positions and withdraw all money by 8:00 UTC on 31 March 2021. Thereafter, customers who are or are resident in the UK will be denied access or carrying out any trading activity on Bybit.
“New memberships using the UK mobile number and / or IP addresses will be restricted immediately. We ask for your immediate cooperation in this matter. We regret this situation and will seek to dialogue with regulators to explore possible options. We look forward to earning the privilege of serving you again in the future. ”
Regulation is choking the market
The ban on crypto derivatives in the UK was a major blow to the ecosystem that was establishing itself in the jurisdiction. Many big names in the industry were already offering their customers access to buy Bitcoins and other cryptocurrencies.
IG Group was one of them. Following the ban on the sale of exchange-traded securities (ETNs) and cryptocurrency derivatives for retail consumers, the trading company announced that it will end its cryptocurrency offering by March 24, 2021.
The retail FX and CFD broker has limited UK retail clients from increasing their exposure to cryptocurrencies since January 6. The trading platform will also increase margin requirements for existing positions on Bitcoin, Bitcoin Cash, Crypto 10 Index, EOS, Ether, Litecoin, NEO and Stellar.
The announcement was made to the IG community platform by administrator CharlotteIG, who will take note of all feedback related to cryptocurrencies and pass it on to senior management.
"Make sure you close all your open positions in spread bets and / or CFDs on cryptocurrencies by and no later than 15:00 pm on Wednesday 24 March 2021, from that moment we will begin to close all open positions based on our bid / prices. prevailing ask. This action is performed in accordance with Term 28 (3) of the latest version of the applicable customer agreement governing your accounts with IG, ”the announcement reads.
FCA has opened 52 investigations into cryptocurrency companies
The FCA recently announced that it is pursuing crypto companies with 52 new investigations. The disclosure comes after bitcoin and other cryptocurrencies gained approval from well-known corporate figures including Elon Musk.
This year until June 30, the Financial Conduct Authority has opened 52 investigations into these activities, according to research by the law firm RPC, however, it is believed that this could be just the tip of the iceberg, as it is unlikely that the authority regulatory authorities are able to do so. handle more than 60 such cases per year, partner Sam Tate said.