Bybit has received in-principle approval to operate a crypto platform in the UAE just days before a $1.4 billion hack. CEO Ben Zhou reaffirmed the company’s commitment to regulatory compliance. Bybit is also expanding in global markets, re-entering India and enhancing operations in Georgia, Kazakhstan, and Turkey while managing regulatory challenges in Europe and Malaysia.
Bybit, a prominent cryptocurrency exchange, has obtained in-principle approval from the United Arab Emirates’ Securities and Commodities Authority (SCA) to launch its crypto trading platform. This approval, secured on February 18, 2025, arrives shortly before a significant $1.4 billion security breach occurred on February 21, emphasizing the urgency of compliance amidst operational challenges. CEO Ben Zhou affirmed Bybit’s dedication to adhering to the stringent regulatory standards necessary for fostering a secure and transparent trading environment for users in the UAE.
The exchange is not only focused on establishing its presence in the UAE but is also expanding globally. Bybit has re-entered the Indian market, having recently resolved a $1 million penalty for previous regulatory oversights. Additionally, the company is enhancing its operations in countries such as Georgia, Kazakhstan, and Turkey, reflecting its expansive international strategy to gain traction in diverse markets.
However, Bybit faces substantial regulatory hurdles in other regions. In late 2024, the company had to suspend operations in the European Economic Area due to new regulations and is currently in the process of securing a comprehensive MiCA license in Austria. Moreover, the Securities Commission in Malaysia mandated that Bybit cease operations in December 2024 for failing to register its exchange, highlighting the complexities of maintaining compliance across jurisdictions.
Looking ahead, Bybit’s success in securing its full operational license in the UAE is paramount for its global ambitions. Nevertheless, the exchange must prioritize fortifying its security measures in light of recent cyber threats, thereby ensuring continued trust from both retail and institutional investors. The company’s path forward will depend on navigating regulatory landscapes while enhancing its platform’s integrity.
In summary, Bybit has accomplished a significant regulatory milestone by obtaining in-principle approval for its crypto platform in the UAE, despite recent security challenges. The firm is expanding its global footprint while facing notable scrutiny in other regions. As Bybit aims for a full operational license, it is imperative that the company addresses present vulnerabilities and regulatory demands to foster trust and support ongoing growth.
Original Source: coinpedia.org
