Cryptocurrency exchange Bybit has received In-Principle Approval (IPA) from the Securities & Commodities Authority (SCA) of the United Arab Emirates to set up as a Virtual Asset Platform Operator.
The approval, dated February 18, 2025, comes shortly after the company reportedly lost over $1.4 billion in liquid-staked Ether and MegaETH in a security breach.
Bybit Nears UAE License for Crypto Operations
"We are honored to have received the IPA from SCA. This approval marks a crucial step in our journey to providing secure and transparent crypto trading solutions," Ben Zhou, Co-founder and CEO of Bybit, commented.
The IPA is a preliminary regulatory approval that allows Bybit to move closer to obtaining a full operational license in the UAE. The company said the license would enable it to offer digital asset services to both retail and institutional clients in the region.
Bybit described the UAE as a key financial hub with regulatory frameworks supporting cryptocurrency and blockchain adoption.
The company stated that it follows global compliance standards, includingAnti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) protocols.
Gained Regulatory Approvals in Jurisdictions
Bybit has secured regulatory approvals in several regions, including India, Georgia, Kazakhstan, and Turkey. The company said these approvals align with its strategy to expand its services while meeting regulatory requirements across jurisdictions.
"Bybit remains dedicated to working hand-in-hand with regulators to foster a compliant and innovative digital asset ecosystem to both retail and institutional investors in the UAE," Zhou added.
Bybit Receives In-Principle Approval to Establish Virtual Asset Platform in the United Arab Emirates https://t.co/f7ZLgywwqC#cryptotrading #memes #cryptoinvesting #cryptocurrencies #bitcointrading #cryptonews #cryptocurrencytrading #cryptomarkets pic.twitter.com/MtyixGrJWZ
— World Of Cryptocurrencies (@worldcryptospot) February 27, 2025
Replaced Stolen Ether After Breach
After the recent attack, Bybit experienced an outflow of over $6.1 billion. The exchange’s CEO confirmed that Bybit replaced the $1.4 billion worth of Ether stolen in the breach. DeFiLlama reported a drop in customer assets from $16.9 billion to $10.8 billion.
Despite this, Bybit assured that it restored the missing Ether and would release an audited proof-of-reserves report soon. To gather leads on the attack, Bybit launched a $140 million bounty program. The breach is suspected to involve North Korea's Lazarus Group.
This article was written by Tareq Sikder at www.financemagnates.com.
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