Bybit, one of the world’s largest crypto exchanges, has received in-principle approval (IPA) from the UAE Securities and Commodities Authority (SCA), bringing it closer to obtaining a full operational license in the United Arab Emirates (UAE). This milestone comes just days after Bybit suffered a $1.4 billion hack, one of the largest in crypto history.
Key Highlights of Bybit’s UAE Expansion
- Bybit secured in-principle approval (IPA) on February 18, 2025, allowing it to operate as a Virtual Asset Platform Operator.
- The UAE approval was granted just days before the $1.4 billion hack on February 21.
- CEO Ben Zhou reaffirmed Bybit’s commitment to regulatory compliance and building a secure, transparent trading environment.
Bybit’s Global Expansion Efforts
Beyond the UAE, Bybit is actively expanding worldwide:
- Re-entered India after paying a $1 million penalty for operating without prior registration.
- Expanded into Georgia, Kazakhstan, and Turkey, reinforcing its global presence.
- Pursuing a MiCA license in Austria to resume services in the European Economic Area (EEA).
Regulatory Challenges in Europe and Malaysia
While growing in the UAE and emerging markets, Bybit faces regulatory hurdles elsewhere:
- Suspended operations in the EEA in late 2024 to comply with new European crypto regulations.
- Ordered to stop operations in Malaysia in December 2024 for running an unregistered exchange.
What’s Next for Bybit?
- Final approval in the UAE would position Bybit as a major regulated exchange in the Middle East.
- Addressing security concerns post-hack will be crucial to rebuilding user trust.
- Further global expansion hinges on meeting regulatory standards across jurisdictions.
Bybit’s push for compliance and licensing signals its commitment to legitimizing crypto trading on a global scale, despite recent security setbacks.
Hidden Insight
While Bybit’s UAE approval strengthens its legitimacy, the bigger challenge is restoring user trust post-hack. If Bybit can successfully implement stronger security measures, its global licensing push could make it one of the most regulated crypto exchanges—a major competitive advantage in the long run.