Bybit Returns to UK After Two-Year Pause Under FCA Rules

The second-largest crypto exchange by trading volume is back in Britain. Bybit UK’s return marks a significant shift two years after regulatory pressure forced the Dubai-based platform to pull out of the market. Starting December 19, UK traders can access spot trading on 100 cryptocurrency pairs through a partnership arrangement that sidesteps direct licensing requirements.

Why Did Bybit Leave the UK in the First Place?

Back in October 2023, the Financial Conduct Authority rolled out stricter rules around crypto promotions. The changes weren’t subtle. Exchanges had to get approval from authorized firms before marketing to British customers. Many platforms couldn’t meet the requirements fast enough, so they shut down UK operations.

Bybit was among them. The exchange, which serves roughly 80 million users worldwide, decided the compliance burden was too steep at the time. So UK customers lost access to one of the industry’s major trading platforms.

The Archax Connection Makes the Bybit UK Return Possible

Here’s where things get interesting. Bybit isn’t coming back with its own FCA license. Instead, the exchange partnered with Archax, a London-based crypto firm that holds specific regulatory permissions. Archax can approve financial promotions on behalf of unauthorized companies, which means Bybit can operate under their regulatory umbrella.

The arrangement isn’t unprecedented. Archax has previously helped exchanges like Coinbase and OKX reach UK users without needing their own authorization. It’s becoming a common workaround for global platforms that want UK access without going through the full licensing process.

Critics might call this regulatory arbitrage. Supporters see it as a pragmatic adaptation to a complex system. Either way, Bybit is betting this model will work.

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What UK Traders Actually Get

The Bybit UK return doesn’t include everything the platform offers globally. There are no derivatives. No leveraged products. No high-risk trading tools that typically worry regulators.

What you do get: spot trading across 100 crypto pairs, from Bitcoin and Ethereum to smaller altcoins. There’s also peer-to-peer trading for users who want direct transactions. The platform emphasizes its liquidity depth and operational standards, pointing to its global user base as proof of reliability.

Every UK customer goes through know-your-customer checks. Risk warnings are plastered across the platform. The exchange makes it clear that crypto investments aren’t covered by the Financial Services Compensation Scheme or the Financial Ombudsman Service. You’re on your own if things go sideways.

The Timing Tells Its Own Story

Bybit’s comeback happens while the UK government is drafting a comprehensive crypto rulebook expected to land by 2027. Lucy Rigby, minister for the City of London, told the Guardian the government wants to make the UK more attractive for crypto firms. The regulatory landscape is shifting from reactive enforcement to structured frameworks.

But there’s a contradiction in the data. FCA research shows 8% of UK adults held digital assets in 2025, down from 12% in 2024. Crypto adoption is actually falling, not rising, despite what exchange press releases might claim. Retail interest has cooled significantly from the bull market peaks.

The Bybit UK return also comes months after the exchange suffered the largest hack in crypto history. North Korean actors allegedly stole $1.46 billion from the platform in February 2025. That’s not ancient history. It’s recent enough that UK customers might reasonably ask what safeguards exist if another breach happens.

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Questions That Haven’t Been Answered Yet

Bybit’s announcement leaves several gaps. The exchange hasn’t explained exactly which legal entity UK customers are contracting with. What happens if there’s a dispute? What recourse exists if funds go missing?

The exchange hasn’t clarified what happens in the event of a hack or insolvency, or which products were explicitly excluded at launch. These aren’t small details for traders putting real money on the platform.

The arrangement with Archax also raises practical questions. How does oversight actually work when one firm approves promotions but another operates the platform? Where does responsibility fall if something goes wrong?

What This Means for the UK Crypto Market

The Bybit UK return could be a test case for how major exchanges navigate British regulations going forward. If this model works, expect other platforms to follow the same path. If it runs into trouble, the FCA might crack down on promotional arrangements entirely.

Industry watchers see this as revealing how global platforms approach markets where they don’t want full regulatory commitments. It’s access without authorization, compliance through partnership rather than direct oversight.

For UK traders, the choice is straightforward. You can use Bybit again, but you’re doing so through a structure that’s designed more for marketing compliance than consumer protection. The platform is legal and approved, but it operates in a regulatory grey zone that might not exist in a few years when the full crypto rulebook arrives.

The bigger question is whether this arrangement represents responsible innovation or just clever regulatory navigation. Bybit is calling it the former. Time will tell which interpretation sticks.

Is Bybit regulated by the FCA? 

No. Bybit operates through a promotional arrangement with Archax, an FCA-authorized firm. Bybit itself doesn’t hold FCA registration or authorization.

Can I trade derivatives on Bybit in the UK? 

Not currently. The UK platform only offers spot trading and peer-to-peer services. Leveraged products and derivatives aren’t available.

Are my funds protected if Bybit gets hacked? 

No. Crypto services aren’t covered by the Financial Services Compensation Scheme or the Financial Ombudsman Service. You bear the full risk.

Why did crypto adoption drop in the UK? 

FCA data shows ownership fell from 12% to 8% between 2024 and 2025. Tighter regulations and cooling market enthusiasm likely contributed to the decline.

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