The Singapore-based crypto derivatives trading platform Bybit has announced that it will suspend operations in the United Kingdom to comply with the ban on retail derivatives trading by the Financial Conduct Authority (FCA). According to the announcement, BitBy will cease rendering futures trading services to customers in the country from March 31. It has asked customers to close positions and withdraw balances before this date.
Bybit complies with a ban on futures trading by the FCA.
Bybit has ceased its operations in the UK to comply with a ban on futures trading issued by the Financial Conduct Authority. According to the FCA, the ban was to take effect from January 6, 2021. The crypto derivatives firm has also moved to restrict new signups from UK phone numbers and IP addresses. While ensuring full compliance, Bybit said it would make efforts to engage in a dialogue with regulatory bodies and explore options. The FCA started considering the ban on derivates after it was reported that UK investors lost a total of $492 million on cryptocurrency derivatives between mid-2017 and 2018.
“Crypto derivatives are ill-suited for retail consumers due to the harm they pose.”
FCA, the UK independent financial regulatory body, issued the ban on cryptocurrency derivatives, stating that they are “ill-suited for retail consumers due to the harm they pose.” The FCA had outlined several other reasons for the ban, saying that cryptocurrency derivatives have no basis for valuation. Speaking further on the ban, the regulatory body’s interim Executive Director of Strategy, Sheldon Mills, said, “This ban reflects how seriously we view the potential harm to retail consumers in these products. Consumer protection is paramount here.”