Bybit exchange announced that it will stop serving clients using U.K.-based IP addresses starting March 31. The move comes following the Financial Conduct Authority’s (FCA) ban on all crypto derivatives trading.
The Singapore-based crypto derivatives exchange said on March 5 that it would be suspending services for its UK clients. Bybit offers many high-end trading products for cryptos like bitcoin (BTC), Ether (ETH), Litecoin (LTC), Bitcoin Cash (BCH), and others.
This move comes after a blanket ban on all retail crypto derivatives trading by the FCA. Customers are given until March 31 to close out their positions and withdraw their money from the platform, according to a company announcement. The announcement also confirmed the company’s intention to continue dialogue with regulators hoping to open up shops in the UK once more.
“We request your immediate cooperation in this matter. We regret this situation and will seek dialogue with regulators to explore options. We hope to be able to earn the privilege to serve you again in the future.”
Moving forward, new sign-ups to the crypto exchange using UK-based IP addresses or mobile phone numbers will be rejected automatically.
The FCA issued an announcement in October 2020 declaring that all retail crypto derivatives trading, comprising of products like futures, options, and exchange-traded notes, would be banned. The ban went into effect in early January.
Interestingly, the FCA’s decision to ban the products flew in the face of a lot of feedback got from industry consultants. The FCA shelved the opinions of the trade bodies, exchanges, national authorities, and legal representatives, with about 97% of the respondents not supporting the prospect of a ban.