- Bybit reopens UK access with spot and P2P trading after a two year exit under tougher FCA promotion rules today.
- The UK platform avoids derivatives and leverage while using Archax approval to meet promotion rule standards.
- Bybit return comes as UK crypto ownership falls and regulators prepare wider digital asset rules by 2027 period.
Bybit has resumed operations in the United Kingdom with a reduced crypto platform, reopening a market it exited in 2023. The exchange now offers spot trading on 100 crypto pairs and a peer-to-peer marketplace.
This return follows a two-year pause triggered by stricter oversight from the Financial Conduct Authority.
Return Through a Different Regulatory Route
Bybit left the UK in late 2023 after new financial promotion rules took effect. Those rules restricted how unlicensed crypto firms could advertise and onboard customers. As a result, several exchanges halted services for British users. Bybit chose to withdraw rather than operate under uncertainty.
The exchange has returned through a promotions approval arrangement. It operates under approval granted by Archax, an FCA-authorized firm. This structure allows marketing activity without direct FCA authorization. Therefore, Bybit can reenter the market while meeting current promotion standards. The approach mirrors a growing trend among overseas exchanges seeking limited UK access.
Narrow Product Scope and Risk Controls
The UK platform launches with fewer features than Bybit’s global service. It does not include derivatives, leveraged trading, and other risky products. Rather it concentrates on simple spot trading and peer-to-peer transactions. This reduced scope aligns with regulatory expectations on consumer protection.
Bybit applies Anti-Money Laundering checks and Know Your Customer processes during onboarding. In addition, the platform displays prominent risk warnings. These notices explain the possibility of losing all invested funds. They also clarify the absence of protection from the Financial Services Compensation Scheme and Ombudsman services.
The exchange states that future UK products will reflect local market rules. However, it has not outlined which services may follow. It has also not clarified which entity UK users contract with. Details on insolvency handling and customer asset protection remain undisclosed.
Market Trends and Policy Shifts
Bybit’s return comes as UK crypto adoption shows mixed signals. The exchange points to ongoing engagement across the market. However, FCA research shows adult crypto ownership declined to around 8% in 2025. That figure fell from twelve percent reported the year before. Data also suggests newer users show less interest in speculative tokens.
In the meantime, the UK government is planning a larger regulation of digital assets. Cryptocurrency legislation is set to make crypto more aligned with conventional financial items. These regulations are likely to be implemented in 2027.
They will bring in clearer standards of operation and requirements of transparency. As a result, firms face pressure to adjust business models early. Moreover, Bybit suspended Indian crypto trading earlier this year amid new regulations.
Security History and Heightened Oversight
The relaunch follows significant scrutiny after a major security breach earlier this year. In February 2025, attackers stole $1.46 billion from Bybit’s offline storage. Authorities later linked the incident to North Korean cyber actors. The stolen funds moved through several wallets before liquidation.
According to industry data, state-linked crypto theft hit record levels at the same period. Chainalysis reported that North Korea stole more than $2 billion in cryptocurrency within one year. As a result, regulators are still concerned with the practice of custody and the resilience of operations.
Bybit’s limited UK return now unfolds under close observation. Regulators and users alike are watching how the exchange manages compliance, risk, and transparency within a tighter regulatory landscape.
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