Bybit Returns to the UK After Two-Year Exit Triggered by Crypto Promotion Rules

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has resumed operations in the United Kingdom after nearly two years away from the market. The exchange says UK users can once again access its platform, following changes made to comply with strict rules on how crypto services can be marketed to British consumers.

The relaunch comes as UK regulators continue to closely monitor crypto advertising, while the government prepares a broader regulatory framework that is expected to be introduced by 2027. Bybit’s return highlights how large global exchanges are adjusting their strategies to operate in the UK under tighter oversight.

The Dubai-based company shut down UK access in late 2023 when new Financial Conduct Authority rules came into force. Those rules reshaped how crypto firms can promote their services, leading several exchanges to scale back or leave the market entirely.

Bybit says its new UK platform is built around compliance with these rules. For now, the exchange is offering spot trading across 100 cryptocurrency pairs and a peer-to-peer trading venue. More complex or higher-risk products have been left out.

FCA Promotion Rules Reshaped the UK Crypto Market

The FCA introduced its updated financial promotion regime for crypto assets in October 2023. The rules were designed to improve consumer protection and reduce misleading advertising. Under the regime, crypto promotions aimed at UK residents must either be issued by an authorized firm or approved by one.

The changes had an immediate impact on the industry. Several crypto companies chose to halt UK operations rather than rework their marketing and onboarding processes. Bybit was one of those firms, pausing access for British customers shortly after the rules took effect.

Since then, the FCA has maintained a strict stance on crypto promotions. The regulator has repeatedly warned firms that failure to comply could result in enforcement action. Clear risk disclosures, transparent messaging, and limits on product design have become central requirements.

Bybit says its return to the UK is focused on meeting these promotion standards. The exchange has emphasized simpler communications, clearer warnings, and a reduced product offering aimed at minimizing risk for users.

UK customers can now trade spot markets across 100 currency pairs. Bybit has described the move as a full reopening of UK services, not a temporary or limited trial. The exchange is positioning the relaunch as a long-term return following its regulatory reset.

At the same time, the regulatory environment remains uncertain. While the UK government has said it plans to introduce a full crypto rulebook by 2027, current oversight still relies heavily on promotion controls. For now, marketing approval remains the main gateway for crypto firms seeking access to UK consumers.

Archax Partnership Enables Compliant Market Access

A key part of Bybit’s UK return is its partnership with Archax, a London-based crypto exchange that holds specific FCA permissions. Archax is authorized to approve financial promotions, allowing it to support firms that are not directly licensed in the UK.

Bybit itself does not hold a UK license. Instead, it is operating under a framework designed to meet the FCA’s financial promotion standards through Archax’s approval. This structure allows Bybit to legally market and provide services to UK customers under existing rules.

The exchange will operate and promote its services in the UK through Archax, rather than seeking its own authorization at this stage. This approach has been used by other major crypto platforms in recent years.

Archax has previously helped large exchanges such as Coinbase and OKX reach UK users without holding direct FCA authorization. The company says its role is to ensure marketing materials meet regulatory requirements while supporting access to compliant crypto services.

“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, in an email statement.

Bybit’s policy team has described the UK as an attractive market due to its mature financial system and clearer regulatory direction. The exchange says it plans to introduce additional products for UK users over time, provided they fit within the promotion rules.

Mykolas Majauskas, senior director of policy at Bybit, said the company views the UK as a place where compliance and innovation can coexist.

“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,” Majauskas said. “In the months ahead, we aim to embody this innovative spirit by introducing new products tailored to the needs of UK users, always within a framework that prioritises transparency, and compliance.”

For now, the offering remains limited. Bybit has confirmed that derivatives trading and leveraged products are not available to UK users. The platform also includes prominent risk warnings, stating that users could lose all invested funds.

The exchange has also made it clear that crypto holdings are not protected by the Financial Services Compensation Scheme or the Financial Ombudsman Service. These disclosures are required under the FCA’s promotion rules and are intended to ensure users understand the risks involved.

Bybit says it has strengthened its Anti-Money Laundering and Know Your Customer procedures for UK customers. According to a press release, these checks are part of a broader effort to align with stricter expectations around onboarding and product design.

However, some details remain unclear. Bybit has not yet answered questions about how the Archax approval works in practice. It has also not confirmed which entity UK users are contracting with or how issues such as hacks or insolvency would be handled.

Market Data, Adoption Trends, and Open Questions

Bybit’s return comes amid mixed signals about crypto adoption in the UK. In its announcement, the exchange pointed to an 8% level of crypto engagement among UK consumers, suggesting steady interest despite regulatory changes.

However, the FCA’s most recent consumer research paints a more cautious picture. According to the regulator, crypto ownership in the UK has fallen to around 8%, down from 12% in earlier surveys. The data also suggests that many newer users have moved away from highly speculative tokens.

This difference between industry claims and regulator data has drawn attention from market observers. Some see it as evidence of a cooling market, while others view it as a natural adjustment following years of rapid growth.

The decision to re-enter the UK without direct FCA authorization has also raised questions. Industry watchers see the arrangement as another test case for how global exchanges operate under evolving promotion oversight regimes.

Supporters argue that partnerships like the one with Archax allow innovation to continue while regulators work on longer-term frameworks. Critics question whether the approach places enough responsibility on firms that are not directly supervised.

The UK government’s plan to establish a full crypto rulebook by 2027 has added another layer of complexity. The announcement has raised expectations that licensing, custody rules, and product standards will become clearer over time. Until then, promotion approval remains the main route to market.

Bybit’s relaunch took effect on December 19. The platform offers spot trading across 100 cryptocurrency pairs and includes a peer-to-peer trading option. Trading is facilitated through Archax’s infrastructure, with zero deposit and withdrawal fees highlighted as part of the setup.

The relaunch also expands access to major cryptocurrencies such as Bitcoin and Ethereum. According to CoinMarketCap data, Bitcoin held a market dominance of 59.29% as of December 19, 2025, with a market capitalization of $1.76 trillion. Bitcoin’s price rose 1.26% over 24 hours, although it was down 24.08% over the previous 90 days.

Insights from Coincu suggest that closer alignment with FCA rules could appeal to investors looking for more compliant trading environments. Analysts also note that technological developments around platforms like Archax could improve security and trust in the UK crypto market.

“Bybit, a Dubai-based cryptocurrency exchange, is relaunching in the UK under regulatory guidance from Archax, a London-based FCA-registered crypto exchange, which notably provides trading and custody services for cryptocurrencies and tokenized real-world assets,” the company said.

As regulators continue to refine oversight and firms adjust their strategies, Bybit’s return highlights the evolving balance between access and regulation in the UK crypto sector. The coming months are likely to show whether this model becomes more widely adopted or remains a temporary solution under a changing rulebook.