Bybit Re-Enters UK via Archax Pact as FCA Tightens Crypto Rules

Bybit, the second-largest cryptocurrency exchange by trading volume, has officially returned to the United Kingdom after a two-year hiatus. The exchange reintroduced its services to British users on Thursday, offering spot trading on 100 crypto currency pairs. This move marks a significant step as the U.K. works toward developing a clearer regulatory framework for digital assets.

The return follows stricter regulations imposed by the Financial Conduct Authority (FCA) in late 2023, which required crypto firms to meet higher standards or exit the market. Bybit chose to re-enter under a compliant framework, leveraging the infrastructure of Archax, a licensed London-based crypto exchange. This collaboration allows Bybit to operate without needing its own U.K. license.

The FCA's regulatory scrutiny has led to the departure of several major crypto firms from the market. However, the U.K. government has signaled its intent to establish a comprehensive crypto rulebook by 2027, aiming to attract innovation while protecting consumers. Bybit's return reflects growing confidence that the U.K. is moving toward a more structured and predictable environment for digital assets.

A Compliant Re-Entry Strategy

Bybit is operating under a framework designed to meet FCA financial promotion standards and enhance transparency for local users. The exchange will market its services through Archax, which holds the necessary authorization to approve financial promotions on behalf of third-party firms. This model has previously enabled other global exchanges like Coinbase and OKX to access the U.K. market without obtaining direct regulatory licenses.

The collaboration with Archax provides a pathway for Bybit to serve British clients while maintaining compliance with FCA rules. According to Ben Brown, chief compliance officer at Archax, the firm has experience in supporting other leading crypto exchanges in navigating U.K. regulations. This partnership reduces the regulatory burden on Bybit, enabling it to focus on expanding its product offerings for local users.

Implications for the U.K. Crypto Ecosystem

The FCA's ongoing consultation on a comprehensive crypto rulebook, which opened in early 2025, is a key factor in the renewed interest from global exchanges. The regulator is seeking input on market abuse, trading platform standards, staking services, and decentralized finance (DeFi). These proposals aim to align crypto regulations with traditional financial rules, ensuring transparency, consumer protection, and innovation-friendly policies.

David Geale, executive director for payments and digital finance at the FCA, emphasized the importance of getting the regulatory framework right. The FCA's proposed rules, which will be implemented by 2027, are expected to set global benchmarks for digital asset regulation. Bybit's return aligns with the government's broader strategy to position the U.K. as a hub for crypto innovation.

Investor and Market Reactions

The U.K. crypto market has been cautious in the wake of recent regulatory changes. However, Bybit's re-entry has been seen as a positive development for investors seeking greater choice and competition. The exchange serves more than 80 million users worldwide and has expanded its presence in markets across Asia and Latin America. Its return to the U.K. could help restore confidence in the local crypto ecosystem.

Analysts are closely monitoring whether the FCA's rulebook will strike the right balance between innovation and risk management. The recent freeze of $28 million in USDT on Russian exchange Garantex by Tether has also highlighted the importance of regulatory oversight in preventing illicit activities. Bybit's emphasis on transparency and compliance may help differentiate it from less-regulated platforms.

Looking Ahead

Bybit has announced plans to introduce new products tailored to U.K. users in the coming months. These initiatives will be developed within a framework that prioritizes compliance and user protection. The exchange's senior director of policy, Mykolas Majauskas, expressed confidence in the U.K.'s potential to foster responsible innovation in the crypto space.

As the FCA continues its consultation process, the regulatory landscape for digital assets is expected to evolve significantly. Bybit's return to the U.K. signals a shift in the market, with global players increasingly viewing the country as a viable and growing hub for crypto services. The next few years will be critical in determining how effectively the U.K. can balance innovation with consumer protection.