Bybit is a leader in the gamification of crypto trading. FinTelegram published an initial review on Singapore-based crypto-derivate trading platform Bybit (www.bybit.com) of Ben Zhou a few days ago. In this context, we also reported on an investor and scam warning issued by the UK Financial Conduct Authority (FCA) against Bybit. In October, the FCA had issued a ban on the sale of crypto derivatives to UK retail investors or consumers. In a recent blog post, Bybit has now announced the suspension of services to UK customers.
Until March 31, 2021, 8 am, all UK citizens or residents must have closed their positions and withdrawn their funds. After that, these clients will no longer be allowed to trade on Bybit. Registration of new clients with UK mobile numbers or IP addresses has already been blocked. This step is justified on the part of Bybit with the FCA ban, which has already been in effect on 6 January 2021.
We think that the termination of Bybit’s UK business is due to the recently issued investor warning. Without this warning, Bybit would probably have allowed the service to continue. The fact is that Bybit is not a regulated trading platform. The platform does not accept FIAT funds, apparently trying to circumvent the need for regulation. We, however, think that it would be necessary to regulate Bybit to protect investors.
Bybit is more a gambling platform that successfully gamifies the investment business. On the other hand, derivatives trading has always been very similar to gambling. But in any case, it needs regulation, especially against the background that crypto is becoming more and more popular.
