Crypto exchange Bybit has re-entered the UK market, relaunching spot trading and peer-to-peer services nearly two years after suspending operations amid tighter regulatory rules from the Financial Conduct Authority.
The relaunch does not involve Bybit securing its own FCA authorisation. Instead, the company is operating under a financial promotions arrangement approved by Archax, a London-based digital asset firm authorised by the FCA to approve crypto marketing for overseas platforms.
This structure allows Bybit to market its services to UK consumers while remaining outside the FCA’s registration regime, a route increasingly used by global crypto firms navigating Britain’s stricter promotions rules.
A cautious return after regulatory reset
Bybit exited the UK in September 2023, shortly before new FCA financial promotion rules came into force. The framework introduced tighter standards around onboarding, risk disclosures, and a mandatory cooling-off period for first-time crypto investors. Several large exchanges paused or restructured UK operations at the time, citing operational and compliance challenges.
Bybit CEO Ben Zhou said the suspension was intended to give the company time to realign its products and messaging with UK regulatory expectations.
“This is not just a restart,” Zhou pointed.
“It’s a new chapter shaped by the expectations of UK users and regulators alike.”
The exchange has now returned with a narrower product set, excluding derivatives and leveraged trading, and with prominent warnings that crypto assets are not covered by the Financial Services Compensation Scheme or the Financial Ombudsman Service.
UK demand remains, despite cooler sentiment
Bybit’s relaunch comes as UK crypto adoption shows mixed signals. FCA-commissioned consumer research published this year suggests around 8% of UK adults hold crypto assets, equivalent to roughly 5.5 million people. While that figure is down from previous highs, centralized exchanges remain the primary entry point, with more than 70% of crypto holders acquiring assets through them.
For exchanges, the UK remains commercially attractive due to its large retail base and global financial connectivity. The trade-off is heavier compliance friction, particularly around marketing, disclosures, and onboarding standards.
“Our focus has been to rebuild with compliance at the core,” said Mykolas Majauskas, Bybit’s senior policy director, adding that the UK’s regulatory direction provides clarity for firms willing to operate within defined boundaries.
Bybit said its UK operations adhere to anti-money laundering and know-your-customer requirements and that all financial promotions are reviewed under Archax’s FCA-approved framework.
Archax has provided similar approvals for other major exchanges seeking UK market access without direct authorisation.
“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,” said Ben Brown, chief compliance officer at Archax.
A test case for the promotions regime
Bybit’s return highlights how the UK’s promotions regime is evolving into a practical gateway for international crypto firms. The arrangement places significant responsibility on the FCA-authorised approver to ensure marketing materials are clear, fair, and not misleading, while leaving open questions about customer protections and contractual relationships.
UK policymakers have said a broader crypto regulatory framework is expected by 2027, extending beyond promotions into supervision and conduct rules.
Jordan V.
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