ByBit UK Review
ByBit is not currently accessible for users in the UK due to regulatory changes. In response to the UK Financial Conduct Authority's (FCA) updated rules on crypto promotions and compliance, ByBit announced the suspension of its services in the region. This includes halting new account registrations and preventing UK users from opening or increasing positions starting October 2023. Existing users must close their accounts by January 8, 2024. The suspension aims to ensure compliance with the FCA's strict guidelines, though ByBit has not confirmed if or when it will return to the UK market.
Launched in 2018, Bybit has quickly gained traction, attracting over three million registered users and reaching daily transaction volumes above $10 billion. Despite its global presence, Bybit’s services are not available in certain regions, including the United States, Singapore, China, Canada, North Korea, Iran, Syria, Sudan, Cuba, Crimea, and Sevastopol. These restrictions stem from local regulatory frameworks.
The FCA’s stricter guidelines aim to enhance consumer protection and strengthen market oversight. Bybit’s decision to exit the UK underscores its efforts to align with regulatory changes and adapt to the evolving cryptocurrency environment. UK traders are encouraged to explore alternative platforms that comply with local laws for their trading needs. In this article, we explore why ByBit is banned in the UK, its key features, the FCA's regulatory restrictions, and the best legal alternatives for crypto trading.
ByBit UK review
Bybit, initially registered in the British Virgin Islands, relocated its headquarters to Dubai in January 2023. The platform caters to traders with a wide array of features, including derivatives, spot, and margin trading, while supporting over 190 cryptocurrencies. Known for its user-friendly interface, Bybit also offers a testnet feature, enabling users to practice trading in a risk-free environment.
Key features
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Performance: Bybit processes up to 100,000 transactions per second with 99.99% uptime reliability, ensuring seamless trading without downtime.
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Leverage options: The platform provides leverage of up to 100x for Bitcoin and up to 50x for other assets.
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Trading pairs: Over 100 pairs are available, including BTC/USDT, LTC/USDT, EOS/USDT, XRP/USDT, and XRP/BTC.
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Fees: Maker-taker trades incur a 0.05% commission, while spot trading costs 0.2%. Deposits are free, and withdrawal fees are minimal.
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Support: Round-the-clock customer service ensures prompt resolution of any issues.
Trading specifications
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Account currency: Cryptocurrencies.
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Minimum deposit: $1.
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Leverage: Up to 1:100.
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Spread: Starting from $1.
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Instruments: Pairs like BTC/USD, ETH/USD, XRP/USD, EOS/USD, and BTC/USDT, alongside USDT pairs such as ETH/USDT, LINK/USDT, LTC/USDT, and XTZ/USDT.
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Margin call/stop out: Not applicable.
ByBit legality in the UK
ByBit is banned for users in the UK due to the Financial Conduct Authority (FCA). Registration on the platform requires location verification, and access will be blocked if the IP address is in a restricted country. Using ByBit from the UK is against FCA laws.
Derivatives are financial instruments whose value is determined by an underlying asset, such as cryptocurrency. On exchanges like ByBit, users can trade contracts that involve buying or selling an asset at a future date without directly owning it.
Crypto trading is legal in the UK, but selling crypto derivatives to retail clients is prohibited.
Pros and cons of ByBit UK
👍 Pros
• High leverage. Offers up to 100x leverage for Bitcoin and up to 50x for other cryptocurrencies, allowing traders to maximize potential gains.
• User-friendly platform. An intuitive interface and advanced tools cater to both beginners and experienced traders.
• Exceptional speed. Processes up to 100,000 transactions per second with 99.99% uptime, ensuring seamless trading.
• Enhanced security. Multi-layered security measures include two-factor authentication and cold storage for safeguarding assets.
• Risk-free learning. A demo trading environment enables users to practice strategies without real-world financial risks.
• Around-the-clock support. 24/7 multilingual customer service ensures issues are resolved promptly.
• Referral rewards. Offers up to $20 for each new user referred through the platform’s program.
👎 Cons
• Unavailable in the UK. Bybit has ceased operations for UK users due to regulatory restrictions.
• Limited KYC. Identity verification options are restricted, which may raise concerns for some users.
• No fiat support. Direct deposits or withdrawals in fiat currency are not available; users can buy cryptocurrencies via bank cards instead.
Is it possible to trade crypto derivatives in the UK?
Trading crypto derivatives is prohibited in the UK. The Financial Conduct Authority (FCA) implemented a ban on the sale of cryptocurrency derivatives and exchange-traded notes (ETNs) in October 2020, with the regulation taking effect on January 6, 2021. Following this, platforms like Bybit ceased their operations for UK users as of March 31, 2021.
The FCA views crypto derivatives as unsuitable for retail investors due to their high risk. Key concerns include:
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Market manipulation. The lack of transparency in the crypto market makes it susceptible to exploitation.
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Cybersecurity risks. Traders face threats like hacking and other forms of cybercrime.
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Volatility. The significant price swings of cryptocurrencies make derivatives highly speculative.
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Valuation challenges. Reliable pricing methods for underlying assets are often unavailable.
Some users attempt to bypass these restrictions by using VPNs to access platforms like Bybit and conceal their location. However, this is illegal under UK law. Such actions can result in frozen accounts and confiscated assets. Users are fully responsible for any consequences, including potential legal repercussions.
Alternatives to ByBit in the UK
If you are looking for alternatives to ByBit in the UK, several cryptocurrency exchanges offer similar or even enhanced features while ensuring regulatory compliance. We have researched the terms and conditions of the best crypto exchanges available in the UK and prepared a comparison table:
Alternatives to ByBit in the UK
| Crypto exchange | Available in the UK | Demo | Coins supported | Min. deposit, USDT | P2P | Spot Taker fee, % | Spot Maker fee, % | Open an account |
|---|---|---|---|---|---|---|---|---|
|
Yes |
Yes |
300+ |
1 |
Yes |
0.10 |
0.08 |
||
|
Yes |
Yes |
400+ |
0 |
Yes |
0.10 |
0.10 |
||
|
Yes |
Yes |
800+ |
1 |
Yes |
0.10 |
0.10 |
||
|
Yes |
Yes |
270+ |
10 |
Yes |
0.10 |
0.10 |
||
|
Yes |
Yes |
2270+ |
1 |
Yes |
0.20 |
0.20 |
ByBit is not legally accessible in the UK - keep an eye on the latest legislation to assess platforms for regulatory compliance
The FCA’s regulatory restrictions on crypto derivatives in the UK reflect a global trend towards tighter controls on trading high-risk financial instruments. If you are planning to invest in crypto assets in the UK, be aware that it is not possible to legally access platforms like ByBit. Instead, consider UK-licensed exchanges that comply with FCA requirements. For example, some platforms offer oil or gold derivatives as part of a regulated market, which may be an alternative for experienced traders.
For users in restricted countries, any attempt to circumvent the rules via VPN carries serious risks. The FCA actively works with providers to monitor suspicious transactions, and accessing an exchange via IP spoofing can lead to account blocking and loss of funds. A safer option is to choose a platform that complies with local laws and offers similar functionality without the need to bypass regulatory barriers.
For long-term planning, it is advisable to monitor changes in the UK legislation and evaluate platforms in terms of their compliance with regulatory requirements. Additionally, exploring new services, such as DeFi platforms that operate without centralized exchanges, can be a useful tool for those looking for innovative approaches to investing. However, caution should still be exercised in choosing projects with a transparent reputation and audited security.
Conclusion
In conclusion, using ByBit in the UK is currently not possible due to strict FCA regulatory restrictions. Trading crypto derivatives is prohibited for retail clients, and attempts to bypass the ban via VPN may lead to serious consequences, including account freezing. Users in the UK should consider legitimate alternatives that comply with FCA requirements to avoid legal and financial risks. The cryptocurrency market continues to evolve, and possible changes in regulation may open up new opportunities for traders. Keep a close eye on regulatory updates and choose platforms that provide reliability and security for their users.
FAQs
What are the alternative ways to invest in cryptocurrency in the UK?
You can use licensed platforms to buy cryptocurrency, store it in wallets, or invest via DeFi protocols. Crypto-asset funds are also available, but make sure they are FCA-compliant.
What criteria should you consider when choosing a platform to trade crypto assets?
Attention should be paid to the license, level of security (e.g. cold storage), transaction fees, and fiat currency support. It is also useful to read user reviews and platform audits.
How can you minimize the risks when investing in crypto assets in the UK?
Only use licensed platforms, comply with local regulations, and choose projects with a proven track record. Avoid high-risk transactions, including derivatives prohibited by the FCA.
What trading strategies can replace derivatives?
Instead of derivatives, you can use spot trading, long-term investing, or staking strategies. These methods are less risky and are available within the framework of existing regulatory frameworks.
Team that worked on the article
Maxim Nechiporenko has been a contributor to Traders Union since 2023. He started his professional career in the media in 2006. He has expertise in finance and investment, and his field of interest covers all aspects of geoeconomics. Maxim provides up-to-date information on trading, cryptocurrencies and other financial instruments. He regularly updates his knowledge to keep abreast of the latest innovations and trends in the market.
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.
As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).