Bybit Returns to the UK

The cryptocurrency exchange Bybit is returning to the UK market after a two-year absence. The platform has relaunched in a scaled-down version, currently offering spot trading on 100 pairs as well as a peer-to-peer marketplace. Bybit previously withdrew from the UK at the end of 2023, following the introduction of stricter financial promotion rules enforced by the Financial Conduct Authority (FCA).

The new version of the service operates under a promotional arrangement approved by Archax, a company authorised by the FCA. Bybit itself is neither directly registered nor licensed in the UK, instead relying on the legal framework provided through its partner.

The company emphasizes that its offering has been adapted to local regulations. It highlights mandatory AML and KYC procedures and states that future products for UK customers will be transparent and compliant with existing financial promotion rules. At launch, derivatives and high-risk leveraged products are not available.

The platform clearly informs users about the risk of losing their entire invested capital. Customers are not covered by the Financial Services Compensation Scheme and do not have access to support from the Financial Ombudsman Service.

Bybit points to an estimated 8% level of cryptocurrency adoption in the UK. However, FCA data shows a decline from a previous 12% and reduced interest in more speculative tokens. The exchange’s return without direct FCA supervision may therefore raise questions about the nature of this strategy.

The company has not yet addressed issues related to liability in the event of a cyberattack or insolvency, nor has it clarified which legal entity UK customers formally enter into a contract with.