ByBit UK Review

ByBit - General Information

Bybit Review

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ByBit was originally registered in the British Virgin Islands and headquartered in Singapore up until January 2023 when they moved operations to Dubai. As mentioned earlier ByBit is a fast-growing crypto platform that supports derivatives, spot, and margin crypto trading. ByBit users have access to advanced trading tools which they can utilize to trade in over 190 cryptocurrencies on a secure and transparent platform.

ByBit offers a user-friendly and intuitive platform with testnet versions for demo trading which is useful for beginners. They pride themselves on having one of the best system functionality capable of handling 100,000 TPS (99.99%) with no server downtimes. It is also worth noting that they have great 24/7 customer support service that resolves most issues quickly and as correctly as possible.

The platform offers leverage of up to 100x for Bitcoin and up to 50x for other supported coins. Users can trade up to 100 cryptocurrency pairs including BTC/USDT, LTC/USDT, EOS/USDT, XRP/USDT, and XRP/BTC, among others.

The trading fees are pretty competitive; users are charged 0.05% of each transaction in maker-taker fees and above 0.2% in spot trading fees. Moreover, deposits are absolutely free while a small fee is charged on withdrawal.

Is ByBit Legal in the UK?

ByBit is not available for United Kingdom users in compliance with the Financial Conduct Authority (FCA) ban. To sign up for ByBit, you must first confirm your location, and if your IP is found in any of the restricted countries then you cannot use the platform. The use of ByBit in the UK is illegal because it doesn’t comply with the regulatory laws of the FCA.

For the benefit of those who might not know, derivatives (also known as contracts) are financial instruments that base their value on an underlying asset. In this case, the asset is cryptocurrency. How trading derivatives works is that you don’t own the asset, but rather you own a contract to buy or sell that asset at a specific time in the future. Crypto derivatives exchanges such as ByBit allow users to buy and sell these contracts.

It is important to note that trading cryptocurrencies in the UK are completely legal. What's banned is the sale of crypto derivatives to retail customers in the UK.

Can I Trade Crypto Derivatives in the UK?

The use of crypto derivatives is highly prohibited in the United Kingdom. In October 2020, the Financial Conduct Authority banned the sale of digital currency derivatives and exchange traded notes (ETNs). The ban came fully into effect on January 6, 2021. ByBit shut down its operations in the UK on March 31 2021 owing to the ban.

The FCA mentioned that digital derivatives are not suitable for retail customers because of the high risk and harm they pose. Some of the risks to investors cited by the regulator include the prevalence of market abuse and cybercrime, extreme volatility in crypto asset price movements, and lack of a reliable basis for valuation due to the inherent nature of the underlying assets, among others.

Some traders have figured out a way to bypass the restriction using ByBit VPN. Using ByBit VPN to conceal their genuine locations these users gain unauthorized access to the exchange even within restricted regions. This act is illegal and extremely dangerous because any account discovered to have gained access from the UK will permanently have all its assets frozen. We do not recommend breaking the law, and users consider this option at their own risk.