Bybit Secures Approval to Operate as Virtual Asset Platform in UAE, Paving Way for Expanded Crypto Services

• Bybit has received in-principle approval from the UAE’s Securities & Commodities Authority to operate as a Virtual Asset Platform.

• The approval positions Bybit to offer crypto services to both retail and institutional clients, advancing its regulatory compliance in the region.

• Beyond the UAE, Bybit also made regulatory progress in India, reflecting its commitment to compliance across different jurisdictions.

Bybit secures regulatory approval from the UAE for a Virtual Asset Platform while making strides in India, enhancing its compliance strategy across jurisdictions.

Bybit to Establish Virtual Asset Platform in the UAE

This authorization moves Bybit closer to offering a broad range of digital asset services to retail and institutional clients in the UAE. It follows its existing regulatory approvals in the Middle East, further solidifying its commitment to compliance in key financial hubs.

Bybit’s co-founder and CEO, Ben Zhou, expressed optimism regarding the IPA and demonstrated confidence in obtaining full operational approval from the SCA in the statement.

“We are honored to have received the IPA from SCA. This approval marks a crucial step in our journey to providing secure and transparent crypto trading solutions, ” Zhou shared in the announcement.

Meanwhile, this development reflects the UAE’s ongoing efforts to position itself as a crypto and blockchain innovation leader. Bybit’s regulatory progress aligns with the UAE’s forward-thinking stance on digital assets, ensuring a compliant and secure trading environment for retail and institutional investors.

Bybit’s expansion in the UAE follows a similar development in India earlier this month. The exchange successfully registered with India’s Financial Intelligence Unit (FIU). This allowed it to resume full operations after a temporary suspension due to compliance issues.

“Big News! Bybit is officially registered with the FIU-IND and making strides in the Indian market! We’re thrilled to expand our presence in India, and this registration marks a huge milestone,” the announcement stated.

Reportedly, Bybit Exchange paid a $1.06 million fine for previously operating without proper registration. It has since aligned with Indian regulatory standards.

Notably, the company confirmed that all services for existing users in India will be restored as of February 25. Furthermore, the onboarding of new users will resume gradually.

Despite its regulatory progress in the UAE and India, Bybit faces scrutiny in Japan. In February, Japan’s Financial Services Agency (FSA) urged major app stores to delist Bybit and other unregistered crypto exchanges.

The FSA cited concerns over unlicensed operations and potential risks to investors, reinforcing Japan’s stringent approach to crypto regulation.

Beyond regulatory developments, Bybit remains in the headlines after a significant security breach. As reported by COINOTAG, over $1.4 billion was withdrawn from its platform. Investigations suggest North Korea’s Lazarus Group was responsible for the attack, further intensifying concerns about security vulnerabilities in centralized exchanges (CEXs).

Despite the breach, Bybit reassured users that all funds remained secure and fully backed. The exchange launched a crisis management strategy, offering a $140 million bounty to track down exploiters and recover stolen assets. However, subsequent reports indicate that Safe Wallets’ system was the weak link, not Bybit’s internal system.

The incident highlights the importance of understanding the risks of crypto wallet security, especially for firms handling large amounts of customer funds.

Conclusion

The recent approvals in the UAE and India signify Bybit’s commitment to adhering to evolving regulatory standards in the cryptocurrency landscape. While facing challenges in other regions, the exchange continues to prioritize security and transparency through strategic compliance initiatives. This balancing act is crucial as the regulatory environment for digital assets evolves globally, necessitating diligence and agility from crypto platforms.