Bybit Reintroduces Its UK Trading Platform Following FCA Guidelines

Bybit is making a comeback in the UK after a two-year hiatus, launching a new platform that supports spot trading for 100 pairs as well as a peer-to-peer trading venue.

The exchange, based in Dubai, had ceased operations for local customers in the UK in late 2023 following the implementation of stricter financial promotion regulations by the Financial Conduct Authority (FCA).

As detailed in a press release, the new service is being introduced under a promotional arrangement sanctioned by Archax, a firm licensed by the FCA, instead of Bybit pursuing direct authorization or registration in the UK.

Customized UK Services That Are “Transparent” and “Compliant”

Bybit touts this relaunch as a strategy to adhere to a more rigorous regulatory framework that dictates how cryptocurrency companies should market, acquire users, and structure their products. The exchange highlights its commitment to Anti-Money Laundering (AML) requirements and Know Your Customer (KYC) processes, promising that future offerings will be tailored for UK customers while complying with promotional regulations.

Currently, the platform does not provide derivatives or high-risk leveraged products and emphasizes alerts regarding the potential loss of invested funds, along with the absence of protections from the Financial Services Compensation Scheme or the Ombudsman.

Declining Crypto Participation in the UK

The announcement claims that crypto engagement in the UK is on the rise, currently at 8%, despite a recent consumer survey by the FCA indicating a drop from 12%. Many new users are now hesitant towards high-risk speculative assets.

This situation, combined with Bybit’s strategy to re-enter the market without direct FCA oversight, could raise concerns about whether this represents true “responsible innovation” or merely regulatory maneuvering under a UK branding.

Bybit has not yet clarified several aspects to Cointelegraph, including how the Archax endorsement operates, the specific entity UK customers will deal with, ramifications in case of cybersecurity breaches or bankruptcy, and which products were excluded at the launch due to FCA stipulations.