- Bybit reenters UK market with Archax, adhering to FCA standards without holding a direct UK license.
- February 2025 hack saw $1.46B stolen by North Korean actors, marking the largest crypto exchange theft ever.
- UK plans full crypto regulation by 2027; crypto ownership fell to 8% as investors become more cautious.
Bybit, the world’s second-largest cryptocurrency exchange by volume, has returned to the UK after a two-year absence. The Dubai-based platform manages over $6.2 billion in assets and has now launched a spot trading platform with 100 crypto pairs, alongside a peer-to-peer marketplace. The move comes after the UK tightened regulations in 2023, limiting unlicensed crypto firms from advertising and offering services.
The exchange partnered with London-based Archax, a licensed firm authorized to approve financial promotions for unlicensed companies. Although Bybit itself does not hold a UK license, it pledged to follow the FCA’s standards for transparency and financial promotion.
Mykolas Majauskas, Bybit’s senior director of policy, said, “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.”
Navigating Regulatory Challenges
Archax’s Chief Compliance Officer, Ben Brown, emphasized the firm’s expertise in guiding crypto exchanges into the UK market. “Archax is supporting Bybit’s compliant access to the UK market, building on our experience where we have previously helped other leading crypto exchanges, such as Coinbase and OKX, access the UK market without the need for their own authorisation,” he noted. This collaboration enables Bybit to comply with UK rules without holding a direct license.
Bybit’s return also comes after a tumultuous year. In February 2025, North Korean cyber actors allegedly stole $1.46 billion from its offline storage, mostly in Ether. The US FBI linked the hack to a group called “TraderTraitor,” marking the largest cryptocurrency theft in history for a single exchange. Consequently, Bybit faces immense pressure to regain user trust while expanding operations responsibly.
UK’s Growing Crypto Framework
The British government is working to regulate crypto assets under the same framework as traditional financial products, expected by 2027. Firms will follow FCA oversight, ensuring transparency, operational standards, and consumer protections.
Lucy Rigby, Minister for the City of London, said, “We want the UK to be at the top of the list for crypto assets firms looking to grow.” Additionally, FCA director David Geale confirmed that “regulation is coming, and we want to get it right.”
Crypto ownership among UK adults fell to 8% in 2025 from 12% in 2024, reflecting growing caution. Most portfolios range between £1,001 ($1,342) and £5,000 ($6,707), while smaller holdings below £100 ($134) have dropped significantly.
