In October 2023, the crypto exchange Bybit was banned by the Financial Conduct Authority (FCA) from operating in the UK. Since then, no one can freely create or manage a Bybit account in the country.
Whether you once used Bybit before the UK ban, you’re an active Bybit user visiting or relocating to the UK, or a crypto enthusiast scouting for a Bybit alternative, this article provides the necessary details you need to continue your crypto journey.
Although Bybit is not allowed in the UK, many still wonder if it is possible to use the crypto exchange through virtual private networks (VPNs). This article addresses this. It also answers the million-dollar question: “Can Bybit return to the UK?”
Why was Bybit banned in the United Kingdom?
Bybit was banned in the United Kingdom because it did not meet the rules set by the FCA, the body that regulates financial activities in the UK.
In January 2021, the FCA officially banned retail access to crypto derivative trading, affecting products like futures, options, leveraged tokens, and exchange-traded notes (ETNs). Note that the financial agency had issued a notice about the ban in October 2020, giving everyone a head start.
According to the UK’s regulatory watchdog, these products were too risky and complex for local users. The agency also highlighted issues such as extreme market volatility, theft and hacking risks, and the lack of regulation around many crypto platforms.
Although the FCA implemented the ban in 2021, it was not until October 2023 that Bybit took action. A month after the 2021 ban, the FCA pinpointed Bybit as an unauthorized firm that “is targeting people in the UK.” Fast-forward to October 1, 2023, and Bybit announced that it would stop accepting new account applications from anyone identified as a United Kingdom resident or citizen. In this way, new users were no longer able to join the crypto exchange.
For existing users, the crypto exchange noted that they would no longer be able to make deposits, open new contracts, or increase existing trading positions from October 8, 2023. However, they were still allowed to close or reduce their positions and withdraw funds from the platform. Bybit explained that traders had until January 8, 2024, before their trading positions would be automatically settled.
It is worth noting that the FCA did not ban Bybit by name. Instead, the regulatory agency imposed stringent crypto guidelines that Bybit failed to meet. As a result, it had to halt its operations in the country to avoid regulatory issues and protect users from potential legal risks.
Is Bybit legal to use in the UK after the ban?
The simple answer is no. As of the time of writing, it is illegal for retail users to access Bybit from the UK. This is because the crypto exchange does not have the FCA’s authorization.
Securing the financial agency’s green light enables any crypto exchange to operate within the regulatory guardrails outlined by the FCA. This means that crypto trading platforms must follow strict advertising and compliance standards. Since Bybit hasn’t done that, it is officially off-limits to UK users.
This doesn’t mean you will be arrested for attempting to log into and use Bybit in the UK. But it does mean you are using the crypto exchange outside the protection of UK financial laws. If anything goes wrong, such as losing funds or facing withdrawal issues, the FCA will not be able to help.
While crypto itself is still legal in the UK, trading on unregulated platforms is not considered safe or compliant. Instead, UK users are encouraged to use Bybit alternatives that are regulated and registered under the FCA’s crypto-asset regime.
In summary, Bybit is not legal to use in the UK. You can technically access it, but it is against FCA regulations and leaves you with no legal protection.
Is it possible to access Bybit via a VPN in the UK?
Yes, it is possible to access Bybit from the UK using a VPN. Recall that the crypto exchange noted that it would restrict those whose IP addresses match a UK location. Well, the VPN’s job is to mask your original IP address, making it look like you’re in a different location, like another country.
Still, it is worth noting that taking this route has its risks. Bybit’s terms of service clearly forbid users in restricted regions, including the UK, from accessing their platform. If the company detects that you’re using a VPN, it can suspend or permanently freeze your account. This means you could lose access to your funds or trading data.
Legally, using a VPN to reach Bybit doesn’t break UK law, but it violates Bybit’s own user agreement. More importantly, it removes all the protections that UK users would have when trading under regulated conditions. If any issue occurs, you won’t be able to report it to the FCA or recover your money through official channels.
Moreover, only those who have an existing account with Bybit can access their accounts using a VPN. This includes expats, digital nomads, or international traders who were previously using Bybit in a country where it is legal before they moved to the UK. Bybit noted in its 2023 exit announcement that it would not accept UK-based credentials from new users during Know Your Customer (KYC) procedures.
So while it is technically possible to access Bybit via a VPN, it’s not advisable. The risks outweigh the benefits, and it is much safer to trade through UK-regulated exchanges. Using a VPN only gives you short-term access but leaves your funds and account vulnerable in the long run.
Top 3 crypto exchanges to use instead of Bybit in the UK
Here are three crypto exchanges that you can choose from since Bybit does not work in the UK currently:
Bitpanda
Launched in 2014, Bitpanda is a crypto exchange that offers UK investors access to most of the services available on Bybit. This includes buying and selling over 600 cryptocurrencies, integrating decentralized finance (DeFi), staking, and crypto trading.
The crypto exchange also stands out as a top choice for crypto newcomers. This is because they can join with as little as £1. It also boasts a user-friendly interface and robust security measures. Bitpanda charges a trading fee of up to 2.49%. It also charges investors buying and selling crypto as a premium a fee of 0.99%.
Although the Austrian crypto exchange has been operating in the UK for years, it secured a regulatory license to operate in the UK in early 2025. Since then, the crypto exchange has freely offered its crypto-focused services to UK crypto investors.
OKX
Ranked among the largest crypto exchanges by traded volume globally, OKX is another option for UK investors seeking a Bybit alternative. The exchange offers a range of advanced trading features, including spot trading, futures trading, and options trading. To uphold security, the crypto custodian uses multi-signature wallets, cold storage, and two-factor authentication to ensure the protection of user funds.
It is worth noting that the FCA does not officially license OKX. This means that users are unprotected in the eventuality that the exchange goes bankrupt. Still, unlike Bybit, it continues to offer its services to local investors. Its support for UK audiences is evidenced by its backing of the country’s sovereign currency, GBP.
MEXC
MEXC is a popular crypto exchange that has gained a reputation for its wide range of assets and competitive fees. Founded in 2018, the exchange was initially launched as the MXC Exchange before rebranding to MEXC Global in 2021. With the platform’s user-friendly interface and advanced trading features, MEXC positions itself as a viable alternative to Bybit.
The crypto exchange offers a diverse portfolio of over 4,200 cryptocurrencies, encompassing spot and futures trading pairs. It charges no maker fee across its spot and futures markets. However, its taker fee is 0.05% for spot trading and 0.02% for futures.
MEXC is not regulated by the UK’s financial agency. Notwithstanding, it explicitly explained that it adheres to the FCA’s regulatory guidelines to ensure that users access their favorite crypto services while maintaining security and compliance.
What might bring Bybit back to the UK market?
Admittedly, Bybit left the UK market alongside other prominent crypto exchanges like Binance and Coinbase. However, Bybit might be able to return to the UK crypto ecosystem if it complies with the FCA’s crypto regulations. This means that it would have to register under the FCA. If this happens, UK users will once again be able to freely trade securely on Bybit.
In 2025, the FCA opened its doors to welcome several crypto exchanges that were previously unlicensed to operate in the country. Among them were Coinbase, Bitpanda, and Kraken. Still, it is worth noting that if Bybit does return to the UK, it cannot offer crypto derivatives trading services to retail investors because the service remains banned by the FCA.
Presently, the FCA has relaxed its restriction on crypto ETN, a financial instrument that was initially banned alongside crypto derivatives. Since the financial agency has opened the road to crypto ETNs, we may see the UK government agency lift the ban on crypto derivatives in the future.
Conclusion
Bybit’s recent decision to leave the UK market may have come as a surprise, leaving traders scrambling for alternatives. While Bybit was a popular choice among UK traders, its departure presents an opportunity to explore alternative exchanges. Still, when choosing a crypto exchange, it is essential to consider factors like security, fees, and regulatory compliance. This article highlighted three Bybit alternatives you can choose from. By doing research and choosing a reputable exchange, local retail users can ensure that trading activities are secure and successful.
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