#

Bybit Secured UAE In-Principle Approval Days Before $1.4B Hack

Despite facing a significant setback with a $1.4 billion hack, cryptocurrency exchange Bybit is making progress toward establishing itself as a major player in the Middle East. The company recently secured in-principle approval to operate a virtual asset platform operator in the United Arab Emirates (UAE) from the Securities and Commodities Authority (SCA), marking a crucial step towards obtaining full operational license.

The approval comes days before Bybit's recent hack, which is considered one of the biggest crypto hacks in history. The incident occurred during a transfer between Bybit's cold and hot wallets, resulting in significant losses for investors. However, despite this setback, Bybit continues to pursue its expansion plans, including securing regulatory approvals in key jurisdictions like India, Georgia, Kazakhstan, and Turkey.

Bybit Co-Founder and CEO Ben Zhou expressed his gratitude for the SCA's approval, stating that it "marks a crucial step in our journey to providing secure and transparent crypto trading solutions." The company is now poised to offer a broad range of digital asset services to both retail and institutional clients in the UAE.

Bybit has faced regulatory challenges in several countries, including India, where it was required to pay a $1 million penalty for violating the country's Information Technology Act. The exchange had been servicing Indian users without securing mandatory registration with the Financial Intelligence Unit (FIU). In Europe, Bybit announced temporary adjustments to its operations in the European Economic Area (EEA) due to compliance issues with Europe's Markets in Crypto-Assets (MiCA) regulations.

Despite these challenges, Bybit remains committed to expanding its presence globally. The French financial regulator, Autorité des Marchés Financiers, recently removed Bybit from its noncompliance list after blacklisting it in May 2022. The exchange continues to work towards obtaining a MiCA license in Austria and is now moving forward with plans to re-enter the Indian market.

With this recent approval, Bybit takes another significant step toward establishing itself as a major player in the crypto industry. As the company looks to rebuild its reputation following the recent hack, it remains focused on providing secure and transparent trading solutions to investors worldwide.