On Monday, the Dubai-based crypto exchange Bybit confirmed it received license approval from the Cyprus market regulators. The report stated the regulator’s final nod would allow the crypto exchange to operate as a regulated exchange and custodial service provider in Cyprus.
The Bybit team plans to offer Cyprus users fiat currency pairs, financial services on digital assets, and crypto trading options. In a press release, Bybit chief executive Ben Zhou highlighted the need for the crypto exchange to expand its geographical presence.
Zhou mentioned that crypto assets provide users with an alternative option to exit the crowded traditional financial system. He expressed delight in launching Crypto Ark in the Cyprus market.
Bybit Expands to Cyprus
Additionally, Zhou mentioned that the Bybit team would contribute to building a compliant, secure, and transparent crypto sector. Recently the Bybit team received the ISO 27001:2013 certification after revising its Know Your Customers (KYC) measures and the anti-money laundering (AML) policies. The certificate enabled Bybit to cement its market position as a compliant, safe, and secure crypto exchange.
In a recent study, Cyprus ranks among the third most populous country in the Mediterranean Sea. The statistics provided by Cyprus authorities revealed that the population had reached over 1.2 million. This implies that Cyprus has a growing crypto-savvy community.
Besides the high population, Cyprus has witnessed a modest increase in crypto adoption. It was reported that the rise in crypto activities has resulted in the growth of a crypto center in Cyprus.
In an earlier report, the former Deputy Minister for Research, Innovation and Digital Policy European Union, Kyriacos Kokkinos, affirmed that Cyprus would become the hub of emerging technologies such as blockchain and crypto in the coming days. Before then, the central bank of Cyprus had adopted prohibitive measures against cryptos.
Overview of Crypto Adoption in Cyprus
Despite the efforts made by the regulators to shape Cyprus’ crypto regulatory landscape, less has been implemented. In 2021 the regulators drafted the Distributed Ledger Technology Bill, which the Cyprus Ministry of Finance opposed in April.
The proposed bill demonstrated that Cyprus was willing to adopt blockchain and crypto technologies. Irrespective of this, it was observed that crypto adoption in Malta is higher compared to Cyprus.
Malta, a Mediterranean country, has numerous employment opportunities for blockchain experts. Following this, Malta’s island has been renamed “Blockchain Island.”
Last week the largest crypto exchange by daily trading volume, Binance, submitted documents to the Cyprus regulators seeking to be deregistered as a crypto asset service provider. The Binance team announced plans to set foot in larger markets with lesser regulations.
Despite Binance exiting the Cyprus market, the Bybit team believes the Mediterranean country has a viable market for crypto. The Bybit team plans to contribute towards the growth of the Cyprus crypto market.
They added that the approval of the license demonstrated Bybit’s steadfast commitment to upholding compliance. The permit allows Bybit to widen its market presence in the European Union after exiting Japan, Canada, and the UK due to regulatory pressure.
The expansion of Bybit to Cyprus came when the EU was preparing to implement the market for crypto assets (MiCA) regulation in 2024. Under the MiCA regulation, European regulators will issue licenses to crypto firms in the region.
Reportedly to pave the way for the MiCA regulation, the Cyprus authority has introduced a registration regime for crypto assets.