Bybit secured UAE in-principle approval days before $1.4B hack
Source: Coin Tegraph
Troubled cryptocurrency exchange Bybit is making preparations for a full operational license in the United Arab Emirates (UAE) after recently suffering a $1.4 billion hack.
Bybit received in-principle approval to set up a virtual asset platform operator in the UAE from the Securities and Commodities Authority (SCA), the exchange announced on Thursday, Feb. 27.
The approval marks a significant regulatory milestone for Bybit as it entered the final stages of obtaining the full operational license.
With the approval, Bybit inched closer to offering a broad range of digital asset services to both retail and institutional clients in the UAE.
Approval came days before Bybit’s hack
Dated Feb. 18, Bybit’s in-principle approval in the UAE came just a few days before the exchange fell victim to a $1.4 billion hack on Feb. 21.
The incident has been called one of the biggest crypto hacks in history, occurring during a transfer between Bybit’s cold and hot wallets.
“This approval marks a crucial step in our journey to providing secure and transparent crypto trading solutions,” Bybit co-founder and CEO Ben Zhou said in the announcement, adding:
“Bybit remains dedicated to working hand-in-hand with regulators to foster a compliant and innovative digital asset ecosystem to both retail and institutional investors in the UAE.”
Bybit scales in India, Georgia, Kazakhstan, Turkey
Beyond the UAE, Bybit continues to secure regulatory approvals worldwide, expanding its presence in jurisdictions like India, Georgia, Kazakhstan and Turkey.
On Feb. 25, Bybit announced its comeback to India, stating that the firm had registered with government authorities and resumed all services in the country.
An excerpt from FIU’s monetary penalty to Bybit in January 2025. Source: Gov.in
To move forward with the market reentry, Bybit was required to pay a $1 million penalty issued by India’s Financial Intelligence Unit (FIU) on Jan. 31. According to the authority, the exchange had violated India’s Information Technology Act by servicing Indian users without securing mandatory registration with the FIU.
Issues in EEA and Malaysia
In late 2024, Bybit announced temporary adjustments to operations in the European Economic Area (EEA), citing compliance with Europe’s Markets in Crypto-Assets (MiCA) regulations.
“Bybit has made the difficult but necessary decision to temporarily adjust the availability of its products and services within the EEA,” the company said in December 2024.
An excerpt from Bybit’s announcement of temporary adjustments to EEA operations. Source: Bybit
Announcing the EEA halt, Bybit noted that it was working toward obtaining a MiCA license in Austria.
Related: Bybit CEO declares ‘war against Lazarus’ after $1.4B hack
In line with Bybit’s efforts to regain European presence, the French financial regulator, Autorité des Marchés Financiers, recently removed the exchange from its noncompliance list after blacklisting it in May 2022.
The exchange continues to face regulatory challenges in some countries. In December 2024, Malaysia’s Securities Commission asked Bybit to cease operations in the country, accusing it of operating an unregistered digital asset exchange.
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