Bybit Makes a Bold Comeback to the UK Crypto Scene After 2023 Exit — Here’s What Changed

Bybit storms back into the UK market, reversing its 2023 retreat in a major strategic pivot.

The crypto exchange executed a full withdrawal from the UK just two years ago, citing regulatory pressures. Now, it's charging back in—signaling a major shift in the compliance landscape and its own global ambitions.

A Regulated Re-Entry

This isn't a stealthy return. Bybit's comeback hinges on securing the necessary regulatory approvals, a move that suggests the UK's crypto rulebook has finally offered a path forward for major players. It's a stark contrast to the exodus seen in 2023, when firms fled rather than navigate the uncertainty.

What This Means for UK Traders

For British crypto enthusiasts, it means renewed access to a top-tier global exchange's liquidity and product suite. Competition heats up instantly, potentially forcing incumbents to sharpen their offerings—or at least their customer service, a perennial pain point in fintech.

The Bigger Picture: A Compliance Blueprint?

Bybit's successful return could serve as a blueprint for other exchanges eyeing the lucrative but complex UK market. It proves that with the right legal groundwork, re-entry is possible. Of course, this also means more scrutiny, more reporting, and the delightful bureaucracy that traditional finance has enjoyed for decades—welcome to the club.

One cynical finance jab? The City of London might finally get the volatile, 24/7 asset class it deserves to match its own energy.

The move underscores a broader trend: crypto is no longer in the wild west. It's playing by the house rules, buying a seat at the table, and—in Bybit's case—knocking on the door it once closed behind itself.

Bybit To Offer 100 Spot Trading Pairs To UK Users

In a press release dated Friday, December 19, ByBit disclosed that it is reentering the UK’s crypto scene after its exit in 2023. According to the report, the exchange’s new UK platform will be offering spot trading on 100 digital asset pairs and peer-to-peer (P2P) trading.

This new launch represents a return for Bybit who paused its operations in the United Kingdom in September 2023 due to the new FCA marketing rules that were set for enforcement later in October that year. These new rules, which centered around solicitation and a cooling-off period for first-time investors, came at a time when the global crypto regulatory landscape was only just starting to take shape.

In its announcement, Bybit said that its fresh UK operations follow rigorous anti-money laundering (AML) and know-your-customer (KYC) standards and comply with the region’s financial promotion requirements. This was achieved through an arrangement with Archax, the first FCA-approved digital asset exchange, brokerage, and custodian in the UK.

Mykolas Majauskas, Bybit’s senior director of policy, said in a statement: 

Our goal is to give UK users reliable access to global opportunities in digital assets. 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. In the months ahead, we aim to embody this innovative spirit by introducing new products tailored to the needs of UK users, always within a framework that prioritises transparency, and compliance.

Bybit’s return to the UK’s cryptocurrency market appears to be strategic, as the region continues to make huge strides in terms of growth and adoption since the turn of the decade. The FCA recently estimated that 8% of adults in the United Kingdom now own crypto assets. 

It is worth noting that this ownership figure appears to be declining, having stood at 12% a year ago. While the drop marks the first dip in overall crypto ownership numbers in the last four years, the current figure is still double the level seen as of 2021.

Total Crypto Market Capitalization

As of this writing, the total crypto market capitalization stands at around $2.95 trillion, reflecting a 0.07% jump so far on Saturday, December 20. According to data from TradingView, the digital asset market has declined by over 2.6% decline in the past week.