Bybit Returns to the UK Market
Bybit, the cryptocurrency exchange based in Dubai, is making its return to the UK market after a hiatus of two years. The exchange had temporarily suspended its services to UK customers in late 2023, coinciding with the introduction of stricter financial promotion regulations by the Financial Conduct Authority (FCA).
New Platform Features
In its relaunch, Bybit is unveiling a new platform that facilitates spot trading across 100 cryptocurrency pairs and includes a peer-to-peer trading venue.
As stated in a press release published by Cointelegraph, this new UK platform is being operationalized through a promotional agreement with Archax, a UK-based firm that is authorized by the FCA, rather than Bybit obtaining its own regulatory authorization to operate in the UK.
Regulatory Compliance and Focus
In this revamped offering, Bybit aims to align itself with the recently imposed regulatory standards that govern marketing, onboarding, and product design within the cryptocurrency sector. The exchange is placing a strong focus on adhering to Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols. It also indicated that its products will be customized for the UK market while operating within the framework established for promotional activities.
Risk Transparency
It’s important to note that the new platform will not feature derivatives or any high-risk leverage products at this stage. Bybit is keen to provide transparency regarding the risks of investing in cryptocurrencies, stressing the potential for total loss of capital, alongside the absence of protections such as those offered by the Financial Services Compensation Scheme or the Financial Ombudsman.
Market Context and Consumer Sentiment
In the context of crypto adoption in the UK, Bybit’s announcement references a modest increase in engagement, now reported at 8%. However, this comes against a backdrop of findings from FCA’s recent consumer research, which indicates a drop in crypto ownership from 12% to the current level. Many newer investors are also showing less interest in speculative tokens.
This development raises significant questions about whether Bybit’s re-entry into the UK market represents genuine responsible innovation or a maneuver to exploit regulatory gaps under the guise of local compliance.
Operational Queries
As of now, Bybit has yet to clarify specific operational queries raised by Cointelegraph, such as how the collaboration with Archax will function, the nature of contracts for UK customers, measures in place for data breaches or insolvencies, and which products have been excluded from launch as per FCA expectations.
