Bybit Scores Cyprus License to Operate Crypto Exchange and Custody Services

Notable cryptocurrency exchange Bybit continues to expand its operations after successfully obtaining a license in Cyprus.

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

Cyprus expansion

According to the official press release shared with Potato encryptionBybit obtaining a license to operate a crypto exchange and provide custody services in Cyprus is a crucial milestone 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, ultimately benefiting all those seeking financial freedom.

Bybit statement text:

“Cyprus is well known as a thriving hub for cryptocurrency activities, with a growing community of cryptocurrency enthusiasts and a favorable regulatory environment. Bybit recognizes the huge potential of the Cypriot market and is excited to introduce its reliability and next-level opportunities to the local digital asset community.”

The license comes a month after Bybit announced it was exiting the Canadian market. Then, the company cited a difficult regulatory environment in the country as the reason behind its decision after the Canadian Securities Administrators (CSA) issued new guidelines for crypto entities, forcing the platforms to seek approval from the regulator.

Bybit Review: Post FTX

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

The recovery was also fast. After laying off its employees, which was part of a “reorganization” intended to “refocus efforts, and cuts will be comprehensive,” Bybit doubled down on its global expansion efforts. This included its plans to offer cryptocurrency lending services to users in May.

The exchange has also received approval “in principle” from Kazakhstan’s Astana Financial Services Authority (AFSA) to operate as a digital asset trading facility and custody service provider in the Astana International Financial Center (AIFC). Before that, Bybit cooperated Partners with Mastercard to introduce a new debit card for cryptocurrency payments.

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