Bybit receives license to operate crypto exchange and custody services in Cyprus

Crypto exchange Bybit logo with Cyprus beach background.

Bybit, the 10th largest crypto exchange by volume and the 3rd most visited, has received a license to operate crypto exchange and custody services in Cyprus, the company announced on Monday.

“This achievement highlights Bybit’s dedication to operating within regulatory frameworks and ensuring secure and compliant trading solutions for its users,” they wrote.

The Cyprus license enables Bybit to provide a comprehensive range of services, including trading between cryptocurrencies and fiat currencies, financial services related to crypto assets, and tailored custody solutions for clients in Cyprus and other EU member states.

“This milestone serves as a testament to Bybit’s commitment to adhering to robust regulatory frameworks while expanding its global presence,” said Ben Zhou, the co-founder and CEO of Bybit. He also expressed his support for “the regulatory objective of developing a cryptocurrency industry that is compliant, secure, and transparent, ultimately benefiting individuals seeking financial freedom.”

In April, Bybit received in-principle approval from Kazakhstan’s Astana Financial Services Authority (AFSA). The pre-approval means that once Bybit fulfills the necessary conditions to complete their full application process, they will receive a permanent license from the AFSA, enabling them to operate a Digital Asset Trading Facility and provide Custody Services at the Astana International Financial Centre (AIFC).

Bybit has not always run its business in compliance with state regulators and it has run into regulatory trouble as a result.

On March 31, Japan’s Financial Service Agency (FSA) sent letters to multiple exchanges, including Bybit, warning them that they are violating the country’s laws by operating without a license.

The FSA sent letters to Binance, MEXC Global, Bybit, Bitforex and Bitget warning them that their operations are in violation of the nation’s fund settlement regulations by facilitating the exchange of crypto assets without first completing the registration process.

The regulator issued its first formal warning letter to Bybit for operating without the necessary permissions back in 2021, but the exchange has yet to see any serious consequences for continuing to operate.