Bybit Re-Enters UK via Archax Framework, Bypassing Direct FCA License

Bybit has reentered the United Kingdom market after a two-year absence, launching a platform offering spot trading on over 100 cryptocurrency pairs according to reports. The exchange is operating under a framework that aligns with the Financial Conduct Authority (FCA) financial promotion rules, facilitated by Archax, an FCA-authorized firm as noted in industry reports. The relaunch highlights Bybit's commitment to compliance, transparency, and tailored product development for UK users.

The UK market presents both opportunities and challenges for Bybit. While the exchange emphasizes responsible innovation, it is not directly licensed by the FCA, raising concerns about oversight. The FCA has maintained a strict stance on crypto marketing, leading to the departure of several firms after 2023 regulations took effect. Bybit's return via Archax's approval mechanism reflects an alternative path to market entry.

The relaunch comes amid shifting dynamics in UK crypto adoption. FCA research indicates a decline in ownership from 12% to 8% of UK adults, suggesting waning interest in speculative tokens. Despite this, Bybit's UK relaunch is positioned to meet rising demand for reliable digital-asset platforms. The platform includes peer-to-peer trading and emphasizes secure onboarding and risk controls.

A New Model for UK Market Entry

Bybit's return is notable for its structure. Instead of seeking direct authorization from the FCA, the exchange is using Archax's regulatory approval to market and operate in the UK. This approach, used previously by firms like Coinbase and OKX, allows Bybit to serve UK users without obtaining its own FCA license. Archax, which specializes in helping firms comply with FCA promotion rules, acts as an intermediary, reducing the regulatory burden on Bybit.

This model has raised questions about the depth of regulatory oversight. Critics argue that Bybit's indirect entry might not align with the FCA's stated goals of protecting consumers according to industry analysis. The FCA has been clear in its warning that crypto services are not covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme, reinforcing risks for UK users.

Focus on Compliance and Market Responsiveness

Bybit is emphasizing compliance with FCA rules as a core pillar of its UK strategy. The exchange highlights its AML and KYC processes, which are designed to meet the regulator's expectations. At launch, the platform does not offer derivatives or leveraged products, focusing instead on spot trading and P2P services. This approach aligns with the FCA's caution around higher-risk instruments.

The exchange also underscores its commitment to user education. Risk disclosures are prominently featured, reminding users that they could lose all invested funds. This emphasis on transparency aims to build trust, particularly as the UK regulatory environment continues to evolve.

Broader Implications for the UK Crypto Market

The return of Bybit to the UK signals broader interest in the market among global crypto exchanges. The FCA is expected to finalize its comprehensive crypto rulebook by 2027, creating a clearer regulatory framework for firms. Bybit's relaunch positions it as an early mover, adapting to regulatory shifts while maintaining a presence in one of the world's most sophisticated financial ecosystems.

Market observers will be watching how the FCA responds to Bybit's indirect entry. While the regulator has not commented publicly on the model, its continued enforcement of financial promotion rules suggests it is monitoring alternative compliance pathways. For investors, the key issue will be whether Bybit's services can deliver both innovation and sufficient safeguards for UK users.