UAE Gives Bybit In-Principal Approval Days Before Crypto Hack

In a shocking turn of events, the United Arab Emirates (UAE) has given crypto exchange Bybit in-principal approval to establish a virtual assets platform in the country, just days before one of the largest cryptocurrency hacks in history.

Bybit announced on February 27 that it had received approval from the nation's Securities and Commodities Authority (SCA), marking a significant milestone in its journey to provide secure and transparent crypto trading solutions. The exchange is now in the final stages of receiving its full operational license, as stated by Ben Zhou, Bybit's co-founder and CEO.

"This approval marks a crucial step in our journey to providing secure and transparent crypto trading solutions," said Zhou. "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."

However, just days later, Bybit was the victim of an exploit that saw perpetrators steal nearly $1.5 billion worth of Ethereum from a single wallet. North Korea's Lazarus Group is believed to have been behind the hack, but it has not confirmed or denied this allegation.

The hack sent shockwaves through the crypto market, with investor confidence remaining cautious despite recent attempts at recovery. Bitcoin fell to $84,000 yesterday, its lowest level since last November, according to data from CoinMarketCap. However, as of publishing time, it had risen slightly to $86,000.

Despite the setback, Bybit remains committed to expanding its presence in new markets and securing regulatory approvals. The exchange is currently working on obtaining approval for a virtual assets platform in Georgia, India, Kazakhstan, and Turkey, alongside the UAE.

"Bybit's in-principal approval from the UAE authorities demonstrates our commitment to establishing a compliant and innovative digital asset ecosystem," said Zhou. "We look forward to continuing our regulatory journey and providing secure and transparent trading solutions for investors across the region."