Bybit's License Approval Increases Cryptocurrency Use in Cyprus

Bybit’s License Approval Increases Cryptocurrency Use in Cyprus

Updated: 26 June 2023

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After Binance left Cyprus, Bybit strengthened the island’s cryptocurrency ecosystem by obtaining an operating permit. Bybit, a cryptocurrency exchange, said that it now has a license to operate in Cyprus as an exchange and custody business.

The third-most popular cryptocurrency exchange on the planet will start providing trading between crypto and fiat currency pairs as well as financial services pertaining to cryptocurrencies.

Cyprus is becoming a more popular crypto hub in the Mediterranean, in part thanks to government initiatives. In 2022, Kyriacos Kokkinos, who was the president’s deputy minister for research at the time, predicted that the nation will develop into a center for new disruptive technologies like blockchain.

A decade has passed since a bank run on Cypriot institutions caused a 600% price spike for Bitcoin, and the Cypriot central bank has previously issued warnings regarding cryptocurrencies.

By pushing the Distributed Ledger Technology Law in 2021, Cyprus signaled its plan to adopt blockchain technology and cryptocurrencies. However, in April 2023, the Cypriot Ministry of Finance decided against moving further with the law.

Nevertheless, adoption rates are small in comparison to those seen on the island of Malta, another Mediterranean country. Malta, sometimes referred to as “Blockchain Island,” provides three times as many blockchain-related jobs per capita and is praised for its crypto ecosystem by Bitcoin OGs like Adam Back.

Cyprus Issues Crypto License to Bybit

The Dubai-based cryptocurrency exchange is expanding its presence in the European Union after leaving Canada and the United Kingdom. It announced on Monday that it had been granted a license in Cyprus for the provision of custody and exchange services for digital assets.

The company, says the action demonstrates its dedication to adhere to local laws. After facing regulatory scrutiny in Japan and leaving Canada and the United Kingdom, the exchange’s footprint in the European Union (EU) is now stronger thanks to the license.

With 1.2 million inhabitants, Cyprus is the third most populous island in the Mediterranean. In a news statement, Ben Zhou, co-founder and CEO of Bybit, stressed the value of the company’s global presence and the role that cryptocurrencies play in providing an alternative to the established financial system: “We are excited to introduce the Crypto Ark to Cyprus.” Ben Zhou, co-founder and CEO of Bybit, stated in a statement that

“This milestone is a testament to Bybit’s commitment to adhering to robust regulatory frameworks while expanding our global presence.”

“We wholeheartedly support the regulatory goal of creating a compliant, secure, and transparent cryptocurrency industry.”

Businesses in the EU are getting ready for new laws known as the Markets in Crypto Assets legislation, or MiCA, which would let them serve the entire union with a single member state’s license. Before MiCA takes effect in 2024, Cyprus is one of the EU states to implement an advance registration system.

The EU arm of FTX was based in Cyprus until its license was revoked as a result of the exchange’s unexpected collapse in November. As part of what appears to be a regulatory consolidation in anticipation of MiCA, Binance has tried to revoke its legal registration in the nation.

Binance, a titan of the cryptocurrency market, recently announced that it would cease operations in Cyprus. Originally based in China, Binance now has offices all over the world, including in crypto-friendly hubs like Dubai and Bahrain. The company has also given up on Cyprus in order to concentrate on bigger markets. In light of the “Immense Potential of the Cyprus Market,” as Bybit acknowledges, the recently approved license will contribute to the expansion of the regional bitcoin ecosystem.