Bybit Receives In-Principle Approval from the UAE Regulator To Set Up As A Virtual Asset Platform Operator
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Crypto exchange Bybit, which just last week suffered a $1.4 billion hacking attack, received great news recently after the UAE regulator, the Securities & Commodities Authority (SCA) granted it In-Principle Approval (IPA) to work as a Virtual Asset Platform Operator.
The approval was dated February 18, and it represents a preliminary regulatory approval that will allow the exchange to come one step closer to becoming a fully licensed platform in the country.
Ben Zhou, Bybit’s co-founder and acting CEO, stated that the exchange is honored to receive the IPA from the SCA. He added that the approval marks a crucial step in the company’s journey to providing transparent and secure crypto trading solutions.
For now, the license will allow it to offer digital asset services, both to the region’s institutional and retail clients. This is an important step for Bybit, which views the UAE as a key financial hub with a proper regulatory framework that supports crypto and blockchain adoption.
The firm also insisted that it already follows global compliance standards, including CFT and AML protocols.
Bybit Continues Its Expansion To Major Crypto Hubs
With the license granted by the SCA, Bybit has now managed to secure regulatory approvals in the UAE, India, Turkey, Kazakhstan, and Georgia.
The approvals represent the continuation of its expansion strategy, while also meeting regulatory requirements in all of these different jurisdictions. Zhou himself said that Bybit remains dedicated to close collaboration with regulators to foster a compliant and innovative digital asset ecosystem for institutional and retail traders alike.
The exchange did encounter issues, such as the recent hack, which was followed by a massive $6.1 billion outflow as investors started withdrawing their cryptos, primarily in the form of stablecoins. However, Bybit’s reaction displayed the exchange’s professional side, as it did not halt withdrawals, but instead, it took out a loan to ensure that all withdrawals would be covered without lengthy waiting periods.
In the meantime, it also worked to quickly replenish the stolen supply, and it even launched a bounty website, offering 10% of the stolen amount ($140 million) to those who can contribute to tracking down the funds. This shows that the exchange has the security of its users funds and data as a priority, which is ultimately what every user wants from a financial platform.
