Dubai-based crypto exchange Bybit has achieved a significant milestone by obtaining a license to operate a crypto exchange and offer custody services in Cyprus. This move comes after Bybit faced challenges in Japan and exited the Canadian and U.K. markets.
Bybit’s commitment to regulatory compliance and dedication to robust frameworks have been key factors in this achievement. In a press release, the company’s co-founder and CEO, Ben Zhou, expressed his support for regulatory objectives to establish a compliant, secure, and transparent cryptocurrency industry.
The license obtained by Bybit allows the company to offer a comprehensive suite of services, including trading between cryptocurrencies and fiat currency pairs, financial services related to crypto assets, and customized custody solutions for clients in Cyprus and other European Union (EU) member states.
Cyprus and the crypto landscape
Cyprus has become a burgeoning hub for cryptocurrency activities. The country implemented an advanced registration regime in anticipation of the Markets in Crypto Assets regulation (MiCA), a new EU-wide regulatory framework set to take effect in 2024.
Bybit’s strategic move to secure a license in Cyprus positions the company advantageously as the EU gears up for MiCA. Also, MiCA will allow companies to serve the entire EU bloc with a license from a single member state, making Cyprus an attractive destination for crypto companies.
While Cyprus recently witnessed withdrawals of licenses from prominent exchanges like FTX and Binance, Bybit’s decision to pursue licensing in the country showcases a counter-trend. The crypto exchange remains confident in its ability to navigate the changing regulatory landscape, betting on its capacity to withstand regulatory consolidation and emerge as a leader in the crypto industry.
Bybit’s reputation for digital asset security, compliance, and protection further solidifies its position in the crypto industry. However, the crypto exchange boasts enhanced Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures and an ISO 27001:2013 certification for a robust security management system.
Bybit recently acquired a license to operate in Kazakhstan after receiving in-principle approval from the Astana Financial Service Authority (AFSA) earlier this year.