Cryptocurrency exchange Bybit has received In-Principle Approval (IPA) from the Securities & Commodities Authority (SCA) of the United Arab Emirates to set up as a Virtual Asset Platform Operator.

The approval, dated February 18, 2025, comes shortly after the company reportedly lost over $1.4 billion in liquid-staked Ether and MegaETH in a security breach.

Bybit Nears UAE License for Crypto Operations

"We are honored to have received the IPA from SCA. This approval marks a crucial step in our journey to providing secure and transparent crypto trading solutions," Ben Zhou, Co-founder and CEO of Bybit, commented.

The IPA is a preliminary regulatory approval that allows Bybit to move closer to obtaining a full operational license in the UAE. The company said the license would enable it to offer digital asset services to both retail and institutional clients in the region.

Bybit described the UAE as a key financial hub Hub A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method Read this Term with regulatory frameworks supporting cryptocurrency and blockchain adoption.

The company stated that it follows global compliance standards, including Anti-Money Laundering (AML Anti-Money Laundering (AML) Anti-money laundering (AML) is a term that describes laws, processes, and regulations that are intended to prevent illegally obtained funds from being disguised as income gained through legitimate means. The fundamental purpose of the AML laws is to help safeguard, detect, and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.Most exchanges have AML measures that include identity verification Anti-money laundering (AML) is a term that describes laws, processes, and regulations that are intended to prevent illegally obtained funds from being disguised as income gained through legitimate means. The fundamental purpose of the AML laws is to help safeguard, detect, and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.Most exchanges have AML measures that include identity verification Read this Term) and Counter-Terrorism Financing (CFT) protocols.

Gained Regulatory Approvals in Jurisdictions

Bybit has secured regulatory approvals in several regions, including India, Georgia, Kazakhstan, and Turkey. The company said these approvals align with its strategy to expand its services while meeting regulatory requirements across jurisdictions.

"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," Zhou added.

Bybit Receives In-Principle Approval to Establish Virtual Asset Platform in the United Arab Emirates https://t.co/f7ZLgywwqC#cryptotrading #memes #cryptoinvesting #cryptocurrencies #bitcointrading #cryptonews #cryptocurrencytrading #cryptomarkets pic.twitter.com/MtyixGrJWZ

— World Of Cryptocurrencies (@worldcryptospot) February 27, 2025

Replaced Stolen Ether After Breach

After the recent attack, Bybit experienced an outflow of over $6.1 billion. The exchange’s CEO confirmed that Bybit replaced the $1.4 billion worth of Ether stolen in the breach. DeFiLlama reported a drop in customer assets from $16.9 billion to $10.8 billion.

Despite this, Bybit assured that it restored the missing Ether and would release an audited proof-of-reserves report soon. To gather leads on the attack, Bybit launched a $140 million bounty program. The breach is suspected to involve North Korea's Lazarus Group.