Bybit has received in-principle approval from the United Arab Emirates’ Securities and Commodities Authority to operate a virtual asset platform, moving closer to obtaining a full operational license. This approval was granted just days before the exchange suffered a $1.4 billion hack, one of the largest crypto hacks in history. The incident occurred during a transfer between Bybit’s cold and hot wallets.
Despite the setback, Bybit continues its global expansion, recently securing regulatory approvals in India, Georgia, Kazakhstan, and Turkey. In India, Bybit resumed services after registering with authorities and paying a $1 million penalty for previously operating without proper registration. Meanwhile, the exchange is navigating compliance challenges in the European Economic Area (EEA) under the Markets in Crypto-Assets (MiCA) regulations.
In Europe, Bybit temporarily adjusted operations to comply with MiCA and is working toward obtaining a license in Austria. Additionally, France’s financial regulator recently removed Bybit from its noncompliance list. However, the company continues to face regulatory scrutiny in Malaysia, where authorities have ordered it to cease operations.
Bybit’s expansion efforts highlight its commitment to regulatory compliance and market growth despite challenges. The exchange’s UAE approval positions it to offer a wide range of digital asset services to both retail and institutional investors. However, the massive hack raises concerns about security and operational risks as Bybit navigates global regulations.
