Bybit, the second-largest cryptocurrency exchange by trading volume, said it has returned to the UK two years after being forced out due to strict rules on promoting and marketing crypto services.
The company, which has about 80 million users worldwide, restarted UK services on Thursday, including spot trading on 100 currency pairs, the company said.
The Financial Conduct Authority (FCA) has been cautious in regulating the advertising and marketing of crypto services to British residents. The regulations introduced in October 2023 caused many crypto firms to cease operations in the country. However, there may be a change in tone after the government said it intends to establish a crypto rulebook 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 Mazauskas, senior director of policy at Bybit. “In the coming months, we aim to embody this innovative spirit by introducing new products tailored to the needs of UK users, always within a framework that prioritizes transparency and compliance.”
Bybit, which is not itself licensed in the country, said it is “operating under a framework designed to meet FCA financial promotion standards and increase transparency for UK users.”
The exchange will operate and market its services under the auspices of London-based crypto exchange Arcex, which has a special license from the regulator to approve financial promotions, proving to be a gateway through which unauthorized companies can market and provide services to UK consumers.
“Archax is supporting Bybit’s compliance access to the UK market, building on our experience where we have previously helped other major crypto exchanges like Coinbase and OKEx access the UK market without requiring their own authorization,” said Ben Brown, chief compliance officer at Arcax, via email.