The second-largest cryptocurrency exchange by volume, with over $6.2 billion in assets trading on its platform, has returned to the UK after a two-year absence. Bybit has reportedly launched a spot trading platform with 100 crypto pairs and a peer-to-peer marketplace, in partnership with UK-based Archax. The Dubai-based exchange bid farewell to the European jurisdiction in 2023 after the UK government passed legislation to curb “illegal” financial promotions through its regulatory body, the Financial Conduct Authority (FCA). The regulations took away the “freedom” unlicensed crypto firms had to advertise and provide services to British residents, and several exchanges, including Bybit , had to suspend local operations. The exchange has gone back to the UK after forming a partnership with London-based crypto exchange Archax, which holds a special license to approve financial promotions on behalf of unauthorized firms. Bybit makes UK return with compliance through partnership Although Bybit is not itself licensed in the UK, the exchange said it will operate under the FCA’s standards for transparency and financial promotion. “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 Majauskas, senior director of policy at Bybit. Archax’s Chief Compliance Officer, Ben Brown, reiterated the firm’s experience 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 told news publications through an emailed statement. Bybit’s return to the British kingdom is a much-needed win in a year where it suffered the largest hack in the history of crypto exchanges in February 2025. North Korean cyber actors allegedly stole $1.46 billion from its offline storage, and the stolen funds, mostly in Ether, were moved to several wallets and then liquidated. Days after the incident, the US Federal Bureau of Investigation linked the attack to North Korea, citing activity by the group known as “TraderTraitor.” The theft marked a record haul for Pyongyang, which has now reportedly accumulated more than $6.75 billion in cryptocurrency theft since 2016. Chainalysis’s report, released Thursday, showed the North Korean regime broke its previous record of $681 million stolen in 2024, and it is the first nation-state to exceed $2 billion in crypto theft in a single year. UK financial watchdogs to welcome crypto regulatory discussions The British government is preparing to bring crypto assets under the same regulatory framework as other financial products, with legislation expected to take effect by 2027. Crypto firms will be required to meet standards overseen by the FCA, including transparency requirements and clear operational guidelines. Lucy Rigby, the minister for the City of London, told the Guardian that the government would like to make the UK more “attractive” 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,” she surmised. The Treasury is currently drafting regulations that would integrate crypto service providers into the remit of the FCA to make sure the services consumers pay for are following the same standards as traditional financial products. “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,” executive director for payments and digital finance at the FCA, David Geale, told Reuters. Per FCA’s Crypto Asset Consumer Research 2025 report, around 8% of adults held digital assets like Bitcoin and Ethereum in 2025, down from 12% in 2024. The financial watchdog’s 2022 survey found that 10% of adults owned crypto, almost double the number from 2021’s findings of just 4.1%. Approximately 21% of crypto holders reported portfolios valued between £1,001 ($1,342) and £5,000 ($6,707), while the share of investors with holdings below £100 ($134) has also tanked significantly. Join a premium crypto trading community free for 30 days - normally $100/mo.
