Does Bybit Report to HMRC?

Have you previously traded using Bybit? HMRC may already know about your transactions. Find out what Bytbit reports to HMRC and how it impacts your taxes.

Is Bybit legal in the UK?

No. Bybit is no longer legally available to retail users in the UK.

In response to new regulations from the Financial Conduct Authority (FCA), including stricter rules around financial promotions, retail crypto derivative products, and compliance standards, Bybit stopped accepting new UK customers in October 2023 and fully ended trading services for existing users later that month.

The FCA has also added Bybit to its warning list, confirming that the exchange is not authorised to operate in the UK. As a result, UK residents can no longer legally use Bybit. Although the exchange may be accessible via VPN, this goes against the platform’s terms of service, and accounts may be frozen at its discretion for these violations.

Read next: Best FCA-Registered Crypto Exchanges UK

Why isn’t Bybit legal in the UK?

Bybit is not legal in the UK because it does not comply with regulations set by the FCA.

The FCA banned the sale of crypto derivatives and exchange-traded notes (ETNs) to retail consumers in January 2021, citing the high risk and complexity of these products. Bybit, which offered such derivatives, continued to operate without FCA approval.

In 2023, the FCA introduced even stricter rules around financial promotions, requiring clearer risk warnings, suitability checks, and a 24-hour cooling-off period for new investors. Rather than adapt to these requirements, Bybit chose to exit the UK market in 2023.

Does Bybit report to HMRC?

As Bybit doesn’t operate in the UK anymore, it’s unlikely the platform is sharing user data with HMRC in the future.

In contrast, crypto exchanges that are registered and operating legally in the UK must comply with anti-money laundering regulations and conduct identity verification (KYC). These regulated platforms may be required to share user information with HMRC, particularly under new frameworks like the OECD's Crypto-Asset Reporting Framework (CARF), which is designed to improve international tax transparency.

Nonetheless, any gains made on Bybit or any other platform are taxable in the UK under HMRC crypto tax rules.

What do crypto exchanges report to HMRC?

It’s not yet clear what specific data HMRC has received from crypto exchanges, as no official disclosures have been made.

However, under CARF, all UK-based crypto platforms will be required to collect and report detailed customer information to HMRC.

This will include users’ full names, addresses, countries of residence, wallet addresses, and comprehensive transaction records, covering transfers, disposals, gross proceeds, and the fair market value of crypto assets.

Exchanges must begin collecting this information in January 2026, with reporting due for the 2026 calendar year by May 2027. Failure to comply could result in penalties of up to £300 per user.

Read next: HMRC Crypto Letters

How do I report my Bybit taxes to HMRC?

UK investors are required to report any gains, losses, or income from crypto as part of their self-assessment tax return, which can be filed online through the Government Gateway portal. If you have transactions on Bybit that you haven’t declared previously, you can use HMRC’s crypto asset voluntary disclosure facility to declare previous gains and income.

Since Bybit does not issue tax documents for UK users, many investors use a crypto tax calculator like Koinly to calculate their transactions and generate the necessary reports for HMRC.

Read next: Crypto Taxes UK Guide

Report your Bybit taxes with Koinly

Koinly makes Bybit tax reporting straightforward. You can import your transaction history from Bybit automatically using API or by uploading a CSV file.

Once your data is imported, Koinly calculates your gains, losses, income, and other relevant figures, then generates the tax reports you need to file with HMRC. Learn more about how to handle your Bybit taxes using Koinly.