Cryptocurrency exchange Bybit is on the verge of obtaining a full operational license in the United Arab Emirates after recently experiencing a significant hack that resulted in a loss of $1.4 billion. The exchange announced that it received in-principle approval from the Securities and Commodities Authority (SCA) to operate as a virtual asset platform within the UAE. This regulatory approval is a crucial step for Bybit as it aims to expand its services to both retail and institutional clients in the region.

The approval from the SCA was granted on February 18, just days before Bybit was targeted by the hack on February 21. This incident is noted as one of the largest crypto hacks to date, occurring during a transfer between Bybit’s cold and hot wallets. Ben Zhou, co-founder and CEO of Bybit, emphasized that this approval is an essential milestone in their commitment to providing secure and transparent crypto trading solutions. He stated, “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.”

In addition to its developments in the UAE, Bybit is also making strides in other markets, having received regulatory approvals in countries such as India, Georgia, Kazakhstan, and Turkey. On February 25, Bybit announced its return to India after registering with local authorities. However, this re-entry came with a $1 million penalty imposed by India’s Financial Intelligence Unit (FIU) for previously operating without necessary registration.

Bybit’s operations in the European Economic Area (EEA) were temporarily adjusted as of late 2024, as the exchange sought compliance with Europe’s Markets in Crypto-Assets (MiCA) regulations. The company acknowledged the challenges of this adjustment but noted its commitment to securing a MiCA license in Austria. Furthermore, the French financial regulator, Autorité des Marchés Financiers, recently removed Bybit from its noncompliance list, a positive step for the exchange following its previous blacklisting in May 2022. However, Bybit continues to face regulatory hurdles, including a recent directive from Malaysia’s Securities Commission to cease operations due to accusations of running an unregistered digital asset exchange.