Cryptocurrency exchange Bybit has reentered the UK market after exiting in 2023 due to stricter regulations on crypto promotions. The platform, the second-largest by trading volume, now offers spot trading on 100 currency pairs under a compliant framework. This move comes as the UK government plans a dedicated crypto rulebook by 2027.
Bybit, which serves around 80 million users globally, left the UK in 2023 when the Financial Conduct Authority (FCA) tightened rules on the advertising and marketing of crypto services. These October 2023 regulations prompted several firms to halt operations in the country. Now, two years later, Bybit has restarted services, including spot trading on 100 currency pairs, effective Thursday.
The exchange is not directly licensed in the UK but operates through a framework that meets FCA financial promotion standards and boosts transparency for local users. It partners with London-based Archax, a crypto exchange holding a special FCA license to approve financial promotions. This setup allows unauthorized firms like Bybit to access UK consumers compliantly.
"The UK is home to one of the most sophisticated financial ecosystems in the world, and its clear regulatory direction makes it an ideal environment for responsible innovation," said Mykolas Majauskas, Bybit's senior director of policy. He added that the company plans to introduce new products for UK users, prioritizing transparency and compliance.
Archax's chief compliance officer, Ben Brown, noted via email: "Archax is supporting Bybit’s compliant access to the UK market, building on our experience where we have previously helped other leading crypto exchanges, such as Coinbase and OKX, access the UK market without the need for their own authorisation."
The FCA remains focused on regulating crypto ads to protect British residents. However, the government's intention to create a crypto rulebook by 2027 signals a potential shift toward clearer guidelines, fostering innovation in the sector.