In the wake of Binance’s exodus from Cyprus, Bybit fortifies the island nation’s crypto milieu with a newly obtained operational license.
Bybit, a global cryptocurrency exchange, recently unveiled its acquisition of a license permitting operations for exchange and custodial services in Cyprus. Holding the third position among the world’s most frequented crypto exchanges, Bybit is set to facilitate trade between cryptocurrency and fiat currencies, and offer crypto-centric financial services.
Cyprus, a prominent island in the Mediterranean Sea with a population of 1.2 million, is witnessing an expansion of Bybit’s international footprint. Ben Zhou, Bybit’s co-founder and CEO, in a press release, underscored the value of enhancing the company’s global reach. He highlighted the pivotal role of cryptocurrency in providing an alternative to traditional finance, exclaiming:
“We are thrilled to bring the Crypto Ark to Cyprus.“
Cyprus is progressively turning into a crypto hub within the Mediterranean, spurred in part by initiatives from the public sector. In 2022, the then Deputy Minister to the President for research, Kyriacos Kokkinos, envisioned the country as a nexus for emerging disruptive technologies like blockchain.
Despite the previous skepticism from the Central Bank of Cyprus towards cryptocurrencies, the country showed significant inclination towards embracing blockchain technology and cryptocurrencies in 2021, advancing the Distributed Ledger Technology Law bill. However, in April 2023, the Cypriot Ministry of Finance opted not to proceed with the legislation.
Nevertheless, compared to Malta—another Mediterranean nation—the adoption levels in Cyprus appear modest. Malta, often dubbed as the “Blockchain Island,” offers thrice the blockchain-related job opportunities per capita. Notable crypto pioneers like Adam Back laud the crypto-friendly environment in Malta.
Moreover, crypto giant Binance recently declared its decision to deregister in Cyprus. Originally headquartered in China, Binance now operates globally with offices in crypto-embracing locations such as Dubai and Bahrain. The company has chosen to shift its focus from Cyprus to larger markets.
Bybit acknowledges the “Tremendous potential of the Cyprus market” and believes that the recently granted license will bolster the local cryptocurrency ecosystem.
While Bybit’s entrance into the Cyprus market is a significant move for the island’s crypto ecosystem, it’s also important to note the potential economic and financial implications for Cyprus.
The integration of crypto trading services could potentially stimulate the local economy by attracting crypto enthusiasts and investors. This could spur new business opportunities, increase job creation in the tech industry, and contribute to the overall GDP of the nation.
Furthermore, the development of the crypto ecosystem in Cyprus could enhance the country’s financial inclusivity. By offering alternative financial services and tools, citizens who are traditionally underbanked or unbanked could gain access to financial systems, thereby bridging the financial gap.
However, while the crypto industry’s growth has its advantages, the risks should not be undermined. Cybersecurity threats, price volatility, and regulatory challenges are just a few of the potential hurdles that the nation would need to navigate as it embraces this new digital frontier. As such, it is essential for both the government and companies like Bybit to foster a crypto environment that is not only thriving but also secure and regulated.