In a surprising turn of events, ByBit has received an in-principal approval to operate in the UAE, despite the recent hack that the platform has faced.
According to the platform’s official release, the Securities & Commodities Authority (SCA) of the United Arab Emirates (UAE) has granted Bybit and In-Principle Approval (IPA) to establish as a Virtual Asset Platform Operator in the United Arab Emirates (UAE).
Additionally, Bybit is nearing the end of the process to obtain its fully functional license. This accomplishment is a major step in Bybit’s continuous effort to give local cryptocurrency traders a safe, reliable, and legal platform.
What Will The Approval Include?
With the authorization, Bybit is one step closer to providing a wide range of digital asset services to institutional and retail clients in the United Arab Emirates.
Following its previous regulatory approvals in the Middle East, Bybit’s advancement in the United Arab Emirates further demonstrates its dedication to compliance in important financial centers.
Ben Zhou, Co-founder and CEO of Bybit, commented on this milestone: “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. 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.”
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In-Principle Approval Comes Despite the Recent ByBit Hack
ByBit’s new in-principal approval in the UAE comes as the platform had recently suffered a hack that resulted in the biggest loss that the crypto sector had ever seen.
As UnoCrypto reported earlier, the security compromise at the Bybit exchange resulted in the loss of almost 499K Ethereum (ETH) worth $1.4 billion.
Hackers had obtained unauthorized access to certain accounts by taking advantage of a flaw in the platform’s systems. In order to stop additional harm, Bybit promptly acted by freezing the impacted accounts and starting an inquiry.
The exchange reassured customers that the overall security of customer assets remained a top concern and that no other substantial sums were compromised in spite of the breach.
The incident has sparked worries about centralized exchange security, highlighting the necessity of ongoing cybersecurity measures enhancement.
Although Bybit’s prompt action and openness in handling the situation lessened the harm, Ethereum’s loss serves as a reminder of the growing cybersecurity threats in the cryptocurrency industry.
Also Read: Crypto Market In Turmoil As Liquidations Cross $1.4 Billion Amid Inflation Fears & Bybit Hack