Crypto exchange Bybit has recently received a license to operate as a crypto exchange and custody service in Cyprus, a significant development following Binance‘s withdrawal from the region. This move allows approximately 1.2 million Cypriot residents to access the fourth largest centralized crypto exchange in the world, falling only behind Bitfinex, OKX, and Binance.
Regulatory authorities in Cyprus approved Bybit’s application, granting the ability to offer its full suite of services in the country. Bybit’s co-founder and CEO, Ben Zhou, emphasized the importance of compliance in the crypto industry, stating that this milestone shows Bybit’s commitment to adhering to strict regulatory guidelines while expanding its global presence.
Interestingly, Cyprus has long aspired to become a central hub for cryptocurrency. The Mediterranean island nation previously attempted to pass a bill that would clarify policies on digital assets. However, the bill was withdrawn in April 2023 before becoming law.
This news comes after Bybit pulled out of the Canadian market in late May due to regulatory changes. Existing Canadian Bybit users will no longer be able to deposit or trade on the platform shortly. Binance, in contrast, withdrew from Canada earlier than Bybit and also de-registered in Cyprus, pending the implementation of European Union crypto regulations under MiCA.
Although Bybit can now operate in Cyprus, it’s essential to acknowledge the pros and cons of such developments, particularly in a country striving to become a cryptocurrency hub. On the one hand, providing regulated and compliant services will likely attract more users and increase the overall quality of crypto services offered in Cyprus. Additionally, it may lead to a more diverse and inclusive ecosystem as new players enter the space. However, expanding the presence of a significant player like Bybit in a nascent crypto ecosystem could also potentially stifle competition, which is a critical aspect of encouraging innovation and growth in the industry.
As countries like Cyprus navigate the benefits and drawbacks of welcoming crypto exchanges, the ongoing challenge lies in striking the right balance between compliance, innovation, and market accessibility for its residents. In this case, only time will tell if Bybit’s entrance into the Cypriot market will ultimately provide a boost to the island nation’s ambitious aspirations of becoming a recognized global crypto hub.
Source: Blockworks
