Cryptocurrency exchange Bybit is an expert in dealing with perpetual contracts and provides services in a wide range of cryptocurrencies. Launched in 2018, the crypto company has already surpassed one million registered users worldwide. However, over the past few months, the UK Financial Conduct Authority (FCA) has raised some concerns regarding the Bybit derivatives trading.
As a result of FCA’s regulations and sanctions, Bybit service had been restricted from serving any new clients in the UK since last year. The implementation by the FCA was sudden and without warning. However, the FCA officials maintain that these regulations are enforced to protect the public interest and to protect the retail investors from the volatile nature of Bybit derivatives.
After the first action of FCA last year, Bybit continued to serve its existing client base in the UK region. However, this would also come to a halt as the FCA has amended the trading limitations for Bybit again. Any new users would not be able to register on the Bybit platforms with the help of UK registered numbers or UK-based IP addresses.
The official statement issued by the Bybit authorities confirmed these new developments and announced to act in compliance with the FCA’s decree. At the same time, Bybit authorities also added that they are under constant contact with the FCA authorities to find a way to facilitate new traders and their existing clients in the UK region.
It should be noted that FCA UK has “banned” the sale of any Bybit derivatives in the United Kingdom with immediate effect. The reason for Bybit popularity is the absence of any spot crypto allocations for the customers and investors. In the aftermath of Bitcoin progression, the amount of bull market trading and sales of derivatives were expected to increase.
However, the retail investors of the UK have to look for other places to trade in the newly introduced Bitcoin futures. As per the FCA, authorities managing the trading risks for derivatives of cryptocurrencies can be quite stable and risky for the retail investors at large. The Bybit officials are still hoping to find an alternative way of facilitating their huge client base in the United Kingdom.