Leading cryptocurrency exchange Bybit has successfully obtained a license to operate in Cyprus, allowing it to offer a full suite of crypto trading and custody services. This marks a key step in the platform’s ongoing global expansion under regulated frameworks.
The authorization enables Bybit to serve customers in Cyprus and other European Union member states with services including crypto-to-crypto and crypto-to-fiat trading, financial services tied to digital assets, as well as secure custodial solutions.
Expansion into the Cypriot Market
The Cyprus license represents a significant achievement in Bybit’s strategic efforts to broaden its international footprint while adhering to rigorous compliance standards. The island nation is increasingly recognized as an emerging hub for cryptocurrency activity, thanks to its supportive regulatory climate and a growing community of digital asset enthusiasts.
In an official announcement, Ben Zhou, co-founder and CEO of Bybit, emphasized the company’s commitment to building a compliant, secure, and transparent crypto ecosystem. He stated that such regulatory milestones ultimately benefit users seeking financial freedom through digital assets.
Bybit’s expansion into Cyprus aligns with its goal to offer reliable and accessible crypto services in regions with clear and forward-thinking regulations.
Strategic Growth Amid Global Challenges
This development comes just a month after Bybit announced its withdrawal from the Canadian market, citing increasingly demanding regulatory guidelines introduced by the Canadian Securities Administrators (CSA). Such moves highlight the exchange’s selective and strategic approach to operating in jurisdictions with sustainable regulatory environments.
Despite challenges throughout the broader crypto industry—including the market downturn and the fallout from major events like the collapse of FTX—Bybit has continued to strengthen its service offerings and global presence.
The exchange underwent a restructuring phase earlier this year, which included a workforce reduction, as part of an effort to streamline operations and focus on long-term growth. Since then, the company has introduced new products such as cryptocurrency lending and partnered with major financial service providers to launch crypto-friendly payment cards.
Market Performance and Recovery
Independent market analyses indicate that Bybit was one of the few exchanges that not only weathered the severe market contraction following the FTX collapse but also posted growth in spot trading volumes. While many centralized exchanges saw significant declines, Bybit reported a 7% increase in spot trading activity in the months after the event.
This resilience underscores the platform’s strong risk management practices and its ability to maintain user confidence during periods of industry-wide uncertainty.
Frequently Asked Questions
What services can Bybit offer in Cyprus with this license?
With the newly acquired license, Bybit can provide crypto exchange services, custody solutions, and facilitate trading between various crypto and fiat currency pairs for users in Cyprus and the EU.
Why did Bybit choose to expand into Cyprus?
Cyprus offers a favorable regulatory environment and a growing base of crypto users. The country is establishing itself as a crypto-friendly jurisdiction, making it an attractive location for compliant international exchanges.
How does Bybit ensure regulatory compliance?
Bybit works closely with regulators across different regions to adhere to local laws and international standards. The exchange implements strong security protocols, transparent operations, and routine audits to maintain compliance and user trust.
Did Bybit exit any markets recently?
Yes, Bybit withdrew from the Canadian market due to newly introduced regulatory requirements that created operational challenges. The exchange continues to evaluate jurisdictions based on regulatory clarity and sustainability.
How did Bybit perform after the FTX collapse?
Contrary to many other exchanges, Bybit saw a 7% increase in spot trading volumes following the fall of FTX. This indicates strong user confidence and robust platform stability.
Where can I learn more about secure crypto trading?
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