Bybit Returns to UK with Spot Trading and P2P Platform After FCA Hiatus – What It Means for Crypto Investors

Bybit, the second-largest cryptocurrency exchange by trading volume, has made a daring comeback to the UK market after a two-year exit forced by tough Financial Conduct Authority (FCA) regulations. Rolling out a spot trading platform boasting 100 crypto pairs and a peer-to-peer (P2P) marketplace, the Dubai-based giant is aiming to reclaim its foothold in one of the world’s financial powerhouses. Yet, with a devastating $1.46 billion hack in 2025 still haunting its reputation and UK crypto ownership on a downward spiral, this relaunch is as much a high-stakes bet as it is a beacon of opportunity.

• Bybit’s UK Relaunch: Returns with spot trading and P2P services after a 2023 exit due to FCA rules on financial promotions.
• Archax Collaboration: Partners with London-based Archax to meet regulatory standards without direct FCA licensing.
• Security Red Flags: Grapples with trust issues following a historic $1.46 billion hack by North Korean actors in 2025.
• UK Regulatory Horizon: Faces a future where crypto will be regulated like traditional finance by 2027.

Bybit’s UK Return: A Second Shot at Success

Back in 2023, Bybit hit the brakes hard on its UK operations. The FCA had introduced stringent rules targeting financial promotions—essentially, marketing guidelines that barred unlicensed crypto firms from advertising to British consumers without approval. This wasn’t just a slap on the wrist; it was a full-on roadblock that sent Bybit and several other exchanges packing. Now, after two years on the sidelines, they’re back with a vengeance. Handling over $6.2 billion in traded assets, Bybit isn’t just testing the waters—they’re cannonballing in with a spot trading platform offering 100 crypto pairs and a P2P marketplace tailored for direct user-to-user trades, as detailed in their recent UK market reentry announcement.

For those new to the game, spot trading means buying or selling cryptocurrencies at the current market price, a straightforward way to own assets like Bitcoin or Ethereum without the complexity of futures or options betting on price swings. The P2P marketplace, on the other hand, is like a digital bazaar—users trade directly with each other, negotiating prices and payment methods, from bank transfers to, in some cases, cold hard cash. It’s a nod to crypto’s roots of cutting out middlemen, though it comes with risks like potential fraud if deals go south. Bybit’s dual offering seems poised to attract both casual traders and those seeking more control over their transactions in the UK market.

But let’s not get ahead of ourselves with cheers. While Bybit’s return signals confidence, their massive trading volume doesn’t erase the scars of past stumbles—nor does it guarantee they’ll stick the landing this time around. The UK isn’t just another market; it’s a proving ground where regulatory scrutiny and user skepticism could make or break their ambitions.

Navigating FCA Rules with Archax: A Clever Workaround?

So, how does Bybit manage this comeback without a direct FCA license? Enter Archax, a London-based crypto exchange with the coveted ability to approve financial promotions on behalf of unauthorized firms. Think of financial promotions as the gatekeeper of trust in advertising—FCA rules demand that crypto companies either get licensed or team up with someone who can vouch for their marketing to ensure it’s not misleading or predatory to UK residents. Bybit’s partnership with Archax is a strategic sidestep, allowing them to operate compliantly without jumping through the full regulatory hoops themselves. It’s a model that’s worked for other big players like Coinbase and OKX, as Archax has a proven track record of bridging this gap.

Bybit’s policy lead is practically glowing with optimism about the UK’s potential as a hub for crypto innovation. Mykolas Majauskas, Senior Director of Policy at Bybit, put it this way:

“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.”

Archax, for their part, is flexing their expertise in compliance navigation. Ben Brown, Chief Compliance Officer at Archax, highlighted their role in enabling such returns:

“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.”

Here’s the rub, though: while this partnership gets Bybit back in the game, it raises questions about the spirit of FCA oversight. Is this a smart interim fix that fosters innovation while maintaining consumer protection, or a loophole that lets big exchanges skirt the deeper accountability of direct licensing? As champions of decentralization, we applaud moves that keep the crypto flame burning, but let’s not pretend this setup is ironclad. It’s a tightrope, and Bybit better not slip.

The Shadow of the $1.46 Billion Hack: Trust on Thin Ice

As Bybit struts back into the UK spotlight with promises of compliance and innovation, a massive dark cloud looms overhead: the record-breaking $1.46 billion hack they suffered in February 2025. This wasn’t just a minor breach—it’s the largest theft in crypto exchange history, with the bulk of the stolen funds in Ether, pinned on North Korean cyber actors identified by the US FBI as “TraderTraitor.” These aren’t your average basement hackers; they’re state-sponsored predators, and a Chainalysis report reveals North Korea alone raked in over $2 billion in crypto thefts in 2025, smashing their prior record of $681 million from 2024. Since 2016, they’ve amassed a staggering $6.75 billion, often funneling these digital spoils into weapons programs and regime operations.

For everyday investors, this isn’t just a headline—it’s a gut punch to trust. These hacks don’t merely drain exchange coffers; they make you wonder if your hard-earned Bitcoin or altcoins are safe anywhere outside a cold wallet. Bybit’s response to the breach has been murky at best. While they’ve issued statements promising enhanced security, specifics on new protocols or user compensation are thin. No third-party audits have surfaced to reassure us they’ve plugged the holes, leaving a bitter taste for anyone eyeing their UK relaunch. Centralized exchanges like Bybit, despite their convenience, remain juicy targets for sophisticated attackers, and this incident is a screaming reminder of why self-custody—keeping your crypto in personal wallets—remains the Bitcoin maximalist’s mantra.

Let’s be real: until Bybit proves they’ve built a fortress around their systems, every new market entry comes with an asterisk. Security isn’t a feature; it’s the foundation. And if you’re hyping price pumps off their relaunch while ignoring this gaping wound, you’re peddling snake oil while the industry hemorrhages credibility.

UK Crypto Regulation: A Double-Edged Sword by 2027

While Bybit navigates its return, the UK government is laying the groundwork for a seismic shift in crypto regulation. By 2027, they plan to bring digital assets like Bitcoin and Ethereum under the same framework as traditional financial products, with the FCA taking the reins on oversight. This isn’t about banning crypto—it’s about taming it, ensuring transparency, and slapping on rules like mandatory Know Your Customer (KYC) checks and anti-money laundering (AML) compliance. Larger exchanges might also face capital requirements, forcing them to hold reserves to cover potential losses, much like banks.

Lucy Rigby, Minister for the City of London, is pitching this as a win for growth, aiming to make the UK a top destination for crypto firms:

“We want the UK to be at the top of the list for crypto assets firms looking to grow and these new rules will give firms the clarity and consistency they need to plan for the long term.”

David Geale, Executive Director for Payments and Digital Finance at the FCA, acknowledges the delicate balance they’re striking:

“Regulation is coming, and we want to get it right. We’ve listened to feedback, and now we’re setting out our proposals for the UK’s crypto regime.”

Here’s where it gets messy. On one hand, clarity in crypto regulation in the UK could legitimize the space, drawing in cautious investors and firms like Bybit who crave stability over Wild West chaos. On the other, overzealous rules risk choking the very disruption that makes crypto revolutionary. Will smaller players get priced out by compliance costs while giants like Bybit thrive? And for Bitcoin purists, does this creep toward centralized oversight undermine the ethos of permissionless finance? It’s a necessary evil for mainstream adoption, perhaps—but don’t expect us to cheer blindly for every regulatory shackle.

Declining UK Crypto Ownership: A Wake-Up Call

Amid the buzz of Bybit’s UK relaunch, a sobering reality check emerges from the FCA’s 2025 Crypto Asset Consumer Research. Only 8% of UK adults now hold digital assets like Bitcoin or Ethereum, a sharp drop from 12% in 2024 and 10% in 2022. Compare that to a modest 4.1% in 2021, and you’ve got a rollercoaster of public interest that’s currently careening downhill. Among those still in the game, 21% have portfolios worth between £1,001 ($1,342) and £5,000 ($6,707), while the number of tiny holdings under £100 ($134) has dwindled significantly.

What’s behind this slide? The FCA survey hints at volatility fears and a lack of understanding as key drivers for those selling off. High-profile disasters like Bybit’s hack likely don’t help, nor does the relentless bear market gloom that’s plagued crypto in recent years. A comment from a UK-based trader on a popular forum summed up the mood: “I sold my altcoins after the last crash—too many scams and hacks. Bitcoin’s all I trust now, and even that’s on a hardware wallet.” Are UK investors just exhausted by the crypto carnival, or are security breaches scaring them off faster than a flash crash? Either way, it’s a glaring warning sign for exchanges banking on mass adoption to fuel their growth.

For Bybit, reversing this trend is an uphill battle. Their shiny new platforms won’t mean squat if public trust keeps eroding. Bitcoin, as the anchor of value and credibility, might still hold sway for wary investors over the altcoin zoo—but only if exchanges stop fumbling the basics.

Bybit’s Offerings: Competitive Edge or Same Old Story?

Let’s zoom in on what Bybit is bringing to the table with this UK relaunch. Their spot trading platform, with 100 crypto pairs, positions them as a heavyweight contender, likely with Bitcoin trading as the star attraction for UK investors skittish about altcoin volatility. Their P2P marketplace adds another layer, appealing to the decentralization crowd by letting users trade directly—think flexibility for the unbanked or those dodging traditional financial rails. But P2P isn’t without pitfalls; scams are rife when there’s no middleman, and while Bybit may offer escrow services to lock funds until trades complete, details on their safeguards are sparse. Without robust protections, this could be a breeding ground for fraud.

Compared to rivals like Binance or Coinbase, Bybit’s $6.2 billion trading volume gives them muscle, but the UK market is a crowded ring. Binance has faced its own FCA battles but retains a loyal base with competitive fees, while Coinbase leans on user-friendly design for newbies. Bybit’s edge might lie in their breadth of pairs and P2P focus, but without standout features or rock-bottom costs, they risk blending into the noise. More crucially, post-hack, can they convince UK traders they’re a safer bet than the competition? That’s the million-dollar—or billion-dollar—question.

Can Bybit Lead a Trust Revival in Crypto?

Bybit’s return to the UK is more than a business move; it’s a litmus test for whether crypto can mesh with mainstream finance without shedding its rebellious soul. Their P2P platform nods to the ethos of cutting out middlemen, a core tenet of decentralization we fiercely back. Yet, as a centralized exchange, Bybit still holds the keys to user funds, a glaring contradiction to Bitcoin’s “not your keys, not your crypto” gospel. If they can marry FCA compliance with ironclad security upgrades, they might redefine crypto’s place in regulated markets. If not, they’re just another fat target for hackers lurking in the shadows.

As Bitcoin maximalists at heart, we see BTC as the ultimate bastion of trust and value amid the altcoin chaos Bybit peddles. Their relaunch could boost Bitcoin’s visibility among UK investors—if they don’t botch it with another breach. But let’s cut the fluff: crypto doesn’t need more hype merchants spinning moonshot fantasies off this news. It needs gritty solutions to ugly problems. Ask yourself—does Bybit’s comeback mark a maturing market ready to play by the rules, or is it just another exchange gaming regulatory gaps until the next disaster strikes?

The stakes couldn’t be higher, not just for Bybit, but for the narrative of decentralization as a real alternative to the creaky status quo. They’ve got a shot to prove crypto can grow up without selling out. Let’s see if they’ve got the guts—and the firewalls—to pull it off.

Key Takeaways and Questions for Reflection

• What forced Bybit out of the UK in 2023?
  The FCA’s tight rules on financial promotions barred unlicensed crypto firms from marketing to UK residents, pushing Bybit and others to suspend operations.
• How does the Archax partnership enable Bybit’s UK relaunch?
  Archax’s license to approve financial promotions allows Bybit to operate compliantly without direct FCA authorization, a tactic used by exchanges like Coinbase.
• What’s the fallout from Bybit’s $1.46 billion hack in 2025?
  Attributed to North Korean hackers, this historic breach exposes security flaws at major exchanges, shaking user trust and spotlighting the need for better cybersecurity in crypto.
• What’s the UK’s roadmap for crypto regulation by 2027?
  The UK plans to regulate crypto assets like traditional finance, with FCA oversight enforcing KYC, AML, and transparency standards to balance innovation and protection.
• Why is UK crypto ownership dropping to 8% in 2025?
  Down from 12% in 2024, public interest may be fading due to market swings, hacks like Bybit’s, and lingering distrust in digital assets.
• How does Bybit’s P2P platform fit with crypto’s decentralization ethos?
  It aligns by enabling direct user trades, cutting out intermediaries, but as a centralized exchange, Bybit still controls funds, clashing with true self-custody ideals.
• Should we be hopeful about Bybit’s UK return?
  Cautiously, yes—if they prioritize security and compliance over flashy promises. But skepticism is warranted until they prove they’ve learned from past failures.