Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

The exchange announced the launch of in the Netherlands on March 28, a new local trading platform compliant with Dutch regulations. The new offshoot will offer local users access to cryptocurrency trading and educational resources.

The operation is made possible through a partnership with Satos, a regulated Bitcoin-focused company in the Netherlands, allowing Bybit’s Dutch users to deposit and withdraw fiat currency and trade over 300 pairs. Ben Zhou, co-founder and CEO of Bybit, highlighted the company’s dedication to regulatory compliance and customer service. He noted the partnership with SATOS as a step towards providing a secure and seamless trading experience backed by top-notch security and support.

“Through our partnership with SATOS, we aim to provide Dutch users with a secure and seamless trading experience, backed by industry-leading security measures and unparalleled support,” he added.

In February 2024, Bybit adjusted some of its services, including discontinuing derivatives trading in the Netherlands, to align with the guidelines set by the Dutch central bank. This move follows similar actions by other major global exchanges like Binance and Gemini, which ceased operations in the Netherlands in 2023 to comply with local regulations.

The Netherlands, a member of the European Union, is part of a trading bloc that recently passed the Markets in Crypto Asset (MiCA) legislation. This EU-wide regulation allows companies to obtain a single license in one EU country and then operate across the entire union.

The expansion comes shortly after Bybit faced a public warning from Hong Kong’s Securities and Futures Commission (SFC) on March 14, for offering crypto-related products in various jurisdictions without the necessary licensing.

Founded in 2018, Bybit has quickly risen to become one of the world’s top three cryptocurrency exchanges by trading volume, serving over 20 million users. The exchange’s daily spot turnover peaked at $4.3 billion on March 4, trailing only behind Binance in terms of volume. It also boasts a partnership with Formula One’s Oracle Red Bull Racing team.