Bybit Scores Cyprus License to Operate Crypto Exchange and Custody Services

Major crypto exchange Bybit continues to expand its operations after successfully obtaining a license in Cyprus.

The newly acquired license from the island country’s regulatory authorities will enable Bybit to offer a full range of services. This includes trading between crypto pairs and fiat currency pairs, financial services related to crypto assets, and custodial solutions specifically designed for clients in Cyprus and EU member states.

Expansion of Cyprus

According to the official press release shared with CryptoPotatoBybit obtaining a license to operate a crypto exchange and provide custodial services in Cyprus is a crucial step for its global expansion roadmap while adhering to strong regulatory frameworks.

Commenting on the development, Bybit Co-Founder and CEO Ben Zhou said the platform “wholeheartedly” supports the regulatory goal of building a compliant, secure and transparent crypto industry, benefiting ultimately to anyone seeking financial freedom.

Bybit’s statement reads:

“Cyprus is recognized as a thriving hub for cryptocurrency activities, with a growing community of crypto enthusiasts and a supportive regulatory environment. Bybit recognizes the immense potential of the Cypriot market and is excited to bring its reliability and next-level opportunities to the local digital asset community.

The license comes a month after Bybit announced it would exit the Canadian market. The company then cited a difficult regulatory environment in the country as the reason for its decision after the Canadian Securities Administrators (CSA) issued new guidelines for crypto entities, requiring platforms to seek regulatory approval.

Bybit Review: Post FTX

Over the past few months, Bybit has steadily expanded its service offerings. The Dubai-based crypto exchange was one of many platforms to be hit by the relentless crypto winter last year, exacerbated by the collapse of Sam Bankman-Fried’s crypto empire – FTX. As a result, it reduced its workforce by 30%.

The recovery was also quick. Following the layoff of its staff, which was part of its “reorganization” which aimed to “refocus efforts, and the cuts will be widespread”, Bybit doubled down on its global expansion efforts. This included its plans to offer users crypto lending services in May.

The exchange has also received “in principle” approval from the Astana Financial Services Authority (AFSA) of Kazakhstan to operate as a digital asset trading system and custodial service provider at the International Financial Center of Kazakhstan. Astana (AIFC). Before that, Bybit associates with Mastercard to offer a new debit card for cryptocurrency payments.

A recent analysis by Nansen found that the November 2022 FTX crash led to lower spot trading volumes for several CEXs, including Bitfinex, Kucoin, Gate.io, and OKX. Bybit, however, was one of the exceptions that noted a 7% increase in its spot trading volume since the fateful event.