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Bybit is nearing a full operational license in the UAE, expanding globally despite regulatory challenges and a $1.4 billion crypto hack.
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Troubled cryptocurrency exchange Bybit is preparing to receive a full operational license in the United Arab Emirates (UAE) after suffering a $1.4 billion hack in February.
Bybit has received in-principle approval to set up a virtual asset platform operator in the UAE from the Securities and Commodities Authority (SCA), the exchange officially announced on Thursday, Feb. 27.
The approval marks a significant regulatory milestone for Bybit, placing it in the final stages of obtaining a full operational license.
With the approval, Bybit is inching 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 so far been called one of the biggest crypto hacks in history, and has occurred 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 has registered with government authorities in India 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 has violated India’s Information Technology Act by servicing Indian users without security 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, has recently removed the exchange from its noncompliance list after previously blacklisting it in May 2022.
The exchange continues to face regulatory challenges in some countries though. In December 2024, Malaysia’s Securities Commission asked Bybit to cease operations in the country, accusing the exchange of operating an unregistered digital asset exchange.
Magazine: How crypto laws are changing across the world in 2025
This article first appeared at Cointelegraph.com News
