by Rubab Fatima
The cryptocurrency exchange Bybit is advancing towards obtaining a complete operating license in UAE although it experienced a large $1.4 billion security hack.
On February 27, Bybit confirmed that they received initial authorisation from SCA of the UAE to run their virtual asset operation. This temporary permit puts Bybit near their official license in the UAE as they extend their business across the region.
Bybit’s provisional approval came on February 18 but the company faced serious breaches the following days on February 21. During the wallet move process between cold and hot wallet storage for Bybit a security breach happened.
Bybit Strengthens Global Presence with Key Approvals
The hack from February 21 did not deter Ben Zhou from the UAE expansion path at Bybit. Our path to safe secure trading now grows stronger thanks to this important approval added CEO Ben Zhou.
“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 works to win industry approvals across many countries besides its strong presence in the UAE. The company earned official permission to operate in India along with other well-regarded nations including Georgia, Kazakhstan, and Turkey. On February 25 Bybit officially came back to India after linking with its relevant national agencies and recovering all business operations.
Despite success the company had to face penalties. To reenter India Bybit accepted a $1 million penalty from the Financial Intelligence Unit because the exchange operated without necessary registration under India’s Information Technology Act.
Bybit needs to overcome several regulatory hurdles to operate in different countries. In late 2024 Bybit began following what MiCA demands from cryptocurrency service providers in the European Economic Area. Bybit announced a service hiatus starting in December 2024 to get the necessary Austrian MiCA license before entering European markets.
Bybit’s Strategy to Navigate Global Regulatory Hurdles
Bybit has been able to obtain approval in several markets but remains blocked by legal restrictions in others. The Autorité des Marchés Financiers eliminated France’s sanctions against Bybit because they added it to the non-compliant market watchlist in May 2022.
Bybit works to regain market confidence by expanding its operations into European markets. The Company faces market difficulties in some areas during its business expansion.
In December 2024 the Securities Commission of Malaysia ordered Bybit to shut down its operations because it operated as an unapproved digital asset exchange. Obstacle from regulators shows that crypto companies continue to face multiple compliance issues as different countries update their crypto regulations.
Having a complete operational license in the UAE would put Bybit into one of the globe’s best-regulated crypto environments. The UAE works actively to support digital asset businesses by offering them a consistent business environment.
The company demonstrates its enduring strength through its continuing push to achieve global compliance as well as expand its operations. When the exchange obtains its full UAE operational license it can use the region’s clear rules to rebuild trust and strengthen platform security while becoming a leading cryptocurrency market participant.
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