Bybit Receives Regulatory Approval in Cyprus
- The new license will allow Bybit to provide crypto custodial services as well as allow locals to trade crypto and fiat currency pairs.
- Crypto adoption rates in Cyprus are small in comparison to those seen on the island of Malta.
- Binance recently announced its decision to deregister in Cyprus.
Europe has seen a rise in the number of crypto service operators rushing to its shores to provide their services. This growth is all thanks to the regulatory clarity provided by the Markets in Crypto Assets (MiCA) regulation. Dubai-based exchange Bybit is the latest crypto service provider to expand its presence in Europe.
Bybit announced on Monday that it has received the necessary license to provide crypto exchange and custodial services in Cyprus. The company remarked that this move reflects its desire and effort to comply with local regulators.
Obtaining a license in Cyprus means Bybit can provide a wide range of services to its users on the island, including allowing them to trade between crypto and fiat currency pairs, among other things. The license also means that Bybit operates as a legal entity without fear of violating local policies.
Bybit’s approval in Cyprus comes weeks after the exchange announced its departure from both the Canadian and Japanese markets due to regulatory concerns.
Reacting to Bybit’s expansion to Cyprus, Ben Zhou, the co-founder and chief executive officer of Bybit, said in a statement,
This landmark is a testament to Bybit’s commitment to adhering to robust regulatory frameworks while expanding our global presence. We wholeheartedly support the regulatory objective of building a cryptocurrency industry that is both compliant, secure, and transparent.
Bybit said the new approval will also boost cryptocurrency activities in Cyprus, which it referred to as a “burgeoning hub for cryptocurrency activities, with a growing community of crypto enthusiasts and a favorable regulatory environment.”
Cyprus sees huge growth in crypto activities.
Cyprus is the third-most populous island in the Mediterranean Sea, with over a million residents. The island is growing into a popular crypto hub in the Mediterranean, largely driven by the support of its government. Last year, Kyriacos Kokkinos, a former deputy minister for research for Cyprus, predicted that the nation would blossom into a center for revolutionary technologies like blockchain.
Cyprus is also the first EU state to introduce advanced policies ahead of the implementation of MiCA next year. Interestingly, Cyprus was the European headquarters of the defunct crypto exchange FTX prior to its collapse late last year.
Crypto service providers believe MiCA will be a game-changer for the industry. Meanwhile, the US remains cold on releasing a regulatory framework for cryptocurrencies.
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