ByBit, a derivatives-only cryptocurrency trading platform is entering the spot crypto market. The new spot exchange services would support BTCUSDT, ETHUSDT, XRPUSDT, and EOSUSDT trading pairs to begin with, with the biggest surprise being XRP.
The expansion has occurred as the result of a series of regulatory actions against the organization. Bybit’s derivatives business has faced warnings from countries around the world, so the need to expand business scope is a survival tactic instead of a preference.
ByBit exits the UK upon Ban
The first wave of regulators hit ByBit during the initial month of 2021, when the UK’s watchdog, the Financial Conduct Authority’s (FCA) announced a nationwide ban on cryptocurrency derivatives, claiming that the crypto assets being traded and exchanged are financially at high risk, especially for retail consumers.
Following the ban, ByBit announced in March that it will be shutting down its operations in the UK, and users are advised to close accounts and withdraw held assets.
“If you are either a U.K. resident or citizen, please close all your positions and withdraw all account balances by 8 a.m. UTC [3 a.m. ET], March 31, 2021. Thereafter, customers located in or are residents of the U.K. will be restricted from accessing or performing any trading activities on Bybit.”, the company announced in a blog post.
Accused of unregistered operations in Canada
After its exit from the UK because of the regulator’s demands, the derivatives exchange found itself in another regulatory upheaval last month in Canada’s Ontario province. Ontario Securities Commission (OSC) accused ByBit of functioning illegally in the region, as an unlicensed crypto trade and exchange organization.
OSC regulatory actions against ByBit were not unsurprising, the Commission has been involved in curbing unregistered crypto trade & exchange platforms since the start of the year.
“Unregistered crypto-asset trading platforms expose Ontario investors to significant risks, including potential loss, theft, and misuse of their assets. The recent explosion of unregistered platforms has magnified these risks…Regulatory oversight serves a critical role in investor protection, and we expect platforms to act swiftly to bring themselves into compliance with Ontario securities law.”, said Grant Vingoe, Chair, and CEO at the OSC.