The United Kingdom’s tightened approach to crypto regulation is beginning to face its first real test as major exchanges explore how much room they still have to operate under the new framework.
Bybit has re-established access for UK users after stepping away from the market when the Financial Conduct Authority introduced stricter financial promotion rules. The return, however, looks very different from its previous presence.
Key takeaways
Bybit has reopened limited access for UK users under the country’s stricter crypto promotion rules
The exchange is operating through an FCA-approved promotions arrangement rather than direct authorization
The UK platform offers a reduced product set, reflecting tighter regulation and cooler retail demand
Instead of a full-service platform, the exchange is offering a scaled-back version designed specifically to comply with the FCA’s tougher requirements.
A different route back to the UK
Rather than applying for direct FCA registration, Bybit is operating through a promotions arrangement approved by Archax, a UK-regulated firm. This setup allows the exchange to legally market certain services without holding its own UK authorization. While permitted under current rules, the structure shifts oversight away from direct supervision and may draw increased regulatory attention as similar models emerge.
What UK users can access
The UK platform is intentionally narrow in scope. It supports spot trading across around 100 trading pairs and includes a peer-to-peer venue, while higher-risk products such as derivatives and leveraged trading remain excluded. Prominent risk disclosures accompany the rollout, warning users about the potential for total loss and clarifying that UK consumer protections like the Financial Services Compensation Scheme and Financial Ombudsman do not apply.
A cooler market backdrop
The timing of the move is notable. Recent FCA research indicates that crypto ownership in the UK has declined from earlier peaks, with retail investors showing less appetite for speculative assets. This contrasts with industry messaging around sustained engagement, raising questions about whether exchanges are returning in search of growth or to maintain a regulatory foothold in a key financial market.
Open questions remain
Several uncertainties remain unresolved. Bybit has yet to clarify which entity UK users are contracting with, how liabilities would be handled in the event of a security breach or insolvency, or which products were ruled out at launch due to regulatory expectations.
What this signals for the UK crypto market
Bybit’s re-entry offers a glimpse into what the UK crypto market may now look like: fewer products, heavier compliance language, indirect regulatory approvals, and a more cautious path forward. Whether this model strikes the right balance between consumer protection and market access will become clearer as regulators and users respond.
