- The biggest crypto exchange stops U.K clients from trading activities
- The new signups from the U.K is not permitted on the platform
- The policy formulation will be done in future for new or existing clients
- The volatile nature and less demand lead to the ban on exchange transactions.
The announcement of a stoppage of serving UK clients came this morning. According to it, the crypto derivative Bybit will discontinue serving its users on March 31st. The exchange’s new regulations served as the main reason for this decision. As a result, it’s requesting clients to process for closure of any positions and withdraw all the funds. This has to be done before the month ends.
The intentions behind the ban
The UK banned the sale of crypto derivatives and ETNs last year. This was decided that these products are not suited for retail consumers. Retail consumers are not benefited from these instruments. As a result, they were treated as a mark of ill suitable to the consumers dealing in retails. The volatility nature of these assets and less demand were considered to be the reasons for banning these cryptos. This ban came into effect in January 2021. But some exchanges like Bybit continued the service for serving these derivatives to the consumers which were already existing on the platform.
But this will not continue for now. The users involved in making new accounts are now prevented from forming new accounts on the exchange platform. The restriction will be imposed on new signups from any U.K. mobile numbers or, say, any IP address immediately. Bybit is the biggest crypto derivatives exchange. The amount of exchange recorded in the past ten days is around $11billions, as per the market tracker CoinGecko. Web analytics SimilarWeb suggested the platform is popular among UK traders. Over 5% of all visitors come to this site. Meanwhile, the exchange tries to have a word with local authorities for more options for new and existing clients.