Bybit Moves Toward UAE License After $1.4B Hack

Bybit, the embattled cryptocurrency exchange, is moving closer to securing a full operational license in the United Arab Emirates (UAE), even as it recovers from a $1.4 billion hack.

On February 27, Bybit announced it had received in-principle approval from the Securities and Commodities Authority (SCA) to establish a virtual asset platform operator in the UAE.

This milestone puts Bybit in the final stages of obtaining full regulatory approval, allowing it to offer digital asset services to retail and institutional clients in the region.

🚨 Approval Came Just Days Before Bybit’s Massive Hack

Bybit’s UAE approval was dated February 18—just three days before the exchange suffered the $1.4 billion hack on February 21.

The exploit, which occurred during a transfer between Bybit’s cold and hot wallets, is one of the biggest crypto hacks in history.

Despite the setback, Bybit remains focused on global compliance, with co-founder and CEO Ben Zhou reaffirming the company’s commitment:

“Bybit remains dedicated to working hand-in-hand with regulators to foster a compliant and innovative digital asset ecosystem for both retail and institutional investors in the UAE.”

🌍 Global Expansion: Bybit Returns to India, Eyes Europe

Beyond the UAE, Bybit has been actively securing regulatory approvals worldwide, expanding into India, Georgia, Kazakhstan, and Turkey.

🔹 India Comeback:

On February 25, Bybit announced its return to the Indian market after registering with government authorities and paying a $1 million penalty for previously operating without approval.

🔹 European Market Adjustments:

Bybit paused services in the European Economic Area (EEA) in late 2024 to comply with Europe’s MiCA regulations, with plans to obtain a MiCA license in Austria.

🔹 France Reversal:

The French financial regulator (AMF) recently removed Bybit from its noncompliance list, marking a turnaround after blacklisting the exchange in May 2022.

🚫 Regulatory Hurdles: Issues in Malaysia & Compliance Challenges

Despite securing new approvals, Bybit continues to face regulatory challenges in some countries:

🔹 Malaysia Crackdown (Dec 2024): The Securities Commission Malaysia ordered Bybit to cease operations for operating an unregistered digital asset exchange.

As Bybit pushes ahead with global compliance efforts, its next steps will determine whether it can regain trust following its recent security breach and solidify its place in the regulated crypto exchange landscape.