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, including
Anti-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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