As the FCA continues to maintain its ban on the crypto-derivatives, the widely known crypto services provider, Bybit, has decided to stop working for every customer residing in the United Kingdom. Bybit dropped an official message for its UK-based customers that they should withdraw their funds by March 31, 2021.
The platform has decided to restrict both new and old users from gaining access to any of its services in the UK. Bybit also highlighted that this prohibition placed on its services in the United Kingdom by the FCA was a tough conclusion to arrive at. This ban implies that every trader on its platform will also be affected by this ban.
FCA ban is also driving away several crypto-related investments out of the United Kingdom. Initially, the FCA ban was supposed to commence on January 6, 2021. The regulatory body sounded a clear warning to various investments and consumers of unauthorized businesses across the UK.
One of these firms includes Dalsari. This firm offers various trading services to its customers across the country.
A previous report released by AMB Crypto revealed that the FCA launched 52 investigations into crypto-related investments in the last year. Experts revealed that the reason behind the sudden increment of investigations carried out by FCA was as a result of pressure selling and outright fraud going on across the country.
Shortly after the inspection was launched, the regulatory body issued a ban on the sales and distribution of crypto-derivatives to any retail investor across the country. This prohibition was issued last October. FCA strongly believed that this ban would prevent retail investors from losing about £53 million [$73.6 million] to crypto-linked derivatives.
The effort made by FCA to protect UK-based retail investors from fraudulent activities is encouraging. But, the ban will also push out legit businesses out of the country. A lot of people have been showing concern about this ban. Since many retail traders across the country are not well informed about crypto education, people believed that the ban action would give rise to more illegal activities.