The Bybit exchange will stop serving UK traders from March 31st due to the UK Financial Conduct Authority’s (FCA) ban on crypto derivatives trading.
Bybit’s management has notified users that the exchange is forced to take such measures due to the need to comply with FCA rules, which prohibit the sale of cryptocurrency derivatives to retail investors. Therefore, UK users are advised to close their trading positions and withdraw all money from the exchange before the end of this month. Registration of new accounts using UK mobile phone numbers and IP addresses will also be prohibited.
Last fall, the regulator banned retail investors from participating in the sale of crypto derivatives and exchange traded bonds (ETNs) pegged to cryptocurrencies. FCA believes that given the volatile nature of such products, they pose significant risks to retail consumers. The FCA ban went into effect in January 2021, but UK users continued to transact on Bybit.
According to analysts from SimilarWeb, this platform is popular with UK traders. They account for over 5% of all Bybit users. The management of the exchange intends to discuss with local authorities possible options for working with new and existing clients from the UK.
Many analysts believe that a ban on cryptocurrency derivatives trading will put retail traders at even greater risk – they will start trading on unregulated exchanges.
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