Bybit Appoints Daniel Lim as General Counsel Amid UK Operations Suspension

Bybit Appoints Daniel Lim as General Counsel Amid UK Operations Suspension

Prominent crypto derivatives exchange Bybit has appointed Daniel Lim as General Counsel, reinforcing the company’s legal and compliance team. With over 20 years of experience in the financial sector, Lim will play a key role in ensuring Bybit adheres to evolving regulatory frameworks. Based out of Singapore, Lim’s role will involve overseeing compliance with relevant rules, regulations, and guidelines as the crypto industry faces increasing regulatory scrutiny.

Lim’s extensive experience includes 13 years in global banking with institutions like ABN AMRO and HSBC, and he has also advised Japanese investment bank Daiwa Capital Markets. Bybit’s CEO and co-founder, Ben Zhou, emphasized that Lim’s expertise will be instrumental in navigating the challenges posed by a rapidly transforming regulatory environment.

Bybit Halts Services in the UK Following FCA Ban

In addition to the appointment of Lim, Bybit has recently made a significant decision to suspend its services in the United Kingdom. This action comes in response to the Financial Conduct Authority’s (FCA) new rules that prohibit retail investors from trading derivatives linked to crypto assets. Bybit’s move follows a ban on Contract for Differences (CFDs), options, futures, and exchange-traded notes (ETNs) that involve unregulated crypto assets.

Consumers who are affected by the suspension have been given until March 31, 2021, to close any open trading positions and withdraw their funds from the platform. The FCA’s move aims to protect retail investors from potential losses, with estimates suggesting that the ban could save investors up to $69 million annually by eliminating risky and complex crypto derivative products. However, existing traders will not be forced to liquidate their current holdings.

The FCA’s regulatory stance suggests that it believes these products are unsuitable for retail consumers, who may not fully understand the risks involved in trading crypto derivatives. In the future, any company offering crypto-related investments will need FCA authorization to continue operations in the UK.

Strengthening Compliance Amid Global Regulatory Changes

Bybit’s decision to enhance its legal and compliance capabilities with the hiring of Lim demonstrates the company’s commitment to aligning with global regulations. The crypto industry has been under increasing pressure from regulators worldwide, as they seek to provide more robust frameworks for digital asset trading.

With Daniel Lim joining Bybit’s leadership team, the company aims to navigate the complex regulatory landscape more effectively and continue expanding its operations in regions where regulatory clarity is more established. Lim’s background in banking and legal compliance will be crucial as Bybit works to maintain its position as a leading crypto exchange in the face of shifting regulations.

Conclusion: Bybit’s Continued Commitment to Compliance and Growth

Bybit’s strategic move to hire Daniel Lim as General Counsel is part of its broader effort to ensure full compliance with regulations in a rapidly evolving global market. Lim’s appointment comes at a pivotal moment for the crypto exchange, as it suspends operations in the UK following the FCA’s ban on crypto derivatives.

While the UK regulatory landscape poses challenges, Bybit’s decision to bolster its compliance team shows its commitment to maintaining trust with users and investors. As the regulatory environment for cryptocurrencies continues to evolve, Bybit and other platforms will need to adapt and collaborate with regulators to ensure the continued growth and adoption of digital assets.

To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential to disrupt traditional industries.