Bybit Secures UAE Approval, Expands in India Amidst Japan Scrutiny and Security Breach

Bybit, a leading cryptocurrency exchange, has secured an in-principle approval (IPA) from the United Arab Emirates’ Securities & Commodities Authority (SCA) to establish itself as a Virtual Asset Platform Operator in the region. This significant development marks a major step towards Bybit obtaining a full operational license, further solidifying its commitment to compliance in key financial hubs.

Bybit’s co-founder and CEO, Ben Zhou, expressed optimism regarding the IPA and demonstrated confidence in obtaining full operational approval from the SCA. “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,” Zhou shared in the announcement.

Meanwhile, this development reflects the UAE’s ongoing efforts to position itself as a crypto and blockchain innovation leader. Bybit’s regulatory progress aligns with the UAE’s forward-thinking stance on digital assets, ensuring a compliant and secure trading environment for retail and institutional investors.

Bybit’s expansion in the UAE follows a similar development in India earlier this month. The exchange successfully registered with India’s Financial Intelligence Unit (FIU), allowing it to resume full operations after a temporary suspension due to compliance issues. “Big News! Bybit is officially registered with the FIU-IND and making strides in the Indian market! We’re thrilled to expand our presence in India, and this registration marks a huge milestone,” the announcement read.

Despite its regulatory progress in the UAE and India, Bybit faces scrutiny in Japan. In February, Japan’s Financial Services Agency (FSA) urged major app stores to delist Bybit and other unregistered crypto exchanges. The FSA cited concerns over unlicensed operations and potential risks to investors, reinforcing Japan’s stringent approach to crypto regulation.

Beyond regulatory developments, Bybit remains in the headlines after a significant security breach. Over $1.4 billion was withdrawn from its platform, with investigations suggesting North Korea’s Lazarus Group was responsible for the attack. Despite the breach, Bybit reassured users that all funds remained secure and fully backed. The exchange launched a crisis management strategy, offering a $140 million bounty to track down exploiters and recover stolen assets. However, subsequent reports indicate that Safe Wallets’ system was the weak link, not Bybit’s internal system.