Bybit, the second-largest cryptocurrency exchange by trading volume, said it has returned to the UK two years after being forced to exit due to stricter rules on the promotion and marketing of crypto services.
The company, which boasts around 80 million users worldwide, restarted its services in the UK on Thursday, including spot trading on 100 currency pairs, the company announced.
The Financial Conduct Authority (FCA) is wary of restrictions on the advertising and marketing of cryptocurrency services to UK residents. Regulations introduced in October 2023 have forced several crypto companies to cease operations in the country. However, a change in tone may be in the cards after the government announced it intends to develop a rulebook for cryptocurrencies by 2027.
“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, senior director of policy at Bybit. “Over the coming months, we aim to embody this innovative spirit by introducing new products tailored to the needs of UK users within a framework that always prioritizes transparency and compliance.”
Although Bybit itself is not licensed in the country, it said it “meets the FCA's financial facilitation standards and operates under a framework designed to increase transparency for UK users.”
The exchange will operate and market its services under the auspices of London-based cryptocurrency exchange Archax, which has a special license from regulators to approve financial promotions and has proven to be an entry point for unlicensed companies to market and offer services to UK consumers.
“Archax supports Bybit's compliant access to the UK market, building on our experience helping other leading crypto exchanges such as Coinbase and OKX gain access to the UK market without the need for their own approvals,” Archax Chief Compliance Officer Ben Brown said in an email.
