Crypto Exchange Operation Licenses In Cyprus To Encourage Growth Of Local Crypto Ecosystems

Ben Zhou (left), co-founder and CEO of Bybit (photo: Twitter @TheMoonCarl)

JAKARTA - Bybit, a crypto exchange, announced that it has obtained a license to operate as a crypto asset exchange and storage in Cyprus. The crypto exchange, which is ranked third in terms of the number of visits, will begin offering trade between crypto pairs and fiat currencies, as well as crypto-related financial services.

Cyprus is the third most populous island in the Middle Sea with a population of about 1.2 million people. In a press release, Ben Zhou, co-founder and CEO of Bybit, explained the importance of expanding the global presence of their group, highlighting the role of crypto as a way to get out of conventional financial systems.

"We are excited to introduce Crypto Ark to Cyprus," Zhou said, quoted by Cointelegraph.

Cyprus is increasingly becoming a crypto center in the Mediterranean region, partly driven by action from the public sector. In 2022, Kyriacos Kokkinos, former vice president minister of research, explained that the country will become a disruptive new technology center, including blockchain technology.

The Cypriot central bank has previously warned about crypto, while it has been ten years since there has been a 600% increase in Bitcoin prices due to unrest in Cyprus banks. In 2021, Cyprus declared its intention to embrace blockchain and crypto technology by pushing for legislation on Distributed Ledger Technology. However, in April 2023, the Ministry of Finance of Cyprus decided not to proceed with the law.

Even so, the crypto adoption rate in Cyprus is still much lower than the island of Malta, another Mediterranean country. Malta offers three times the number of jobs related to blockchain per capita and is often referred to as "Blockchain Island". Bitcoin's main actors, including Adam Back, gave praise to the crypto environment in Malta.

In addition, Binance, a leading crypto company, recently announced that it would be releasing its operational permits in Cyprus. Originally based in China, Binance now has offices around the world and in crypto-friendly places such as Dubai and Bahrain, and they are leaving Cyprus to focus on a larger market.

Bybit admits "the huge potential of the Cyprus market" and newly approved licenses will help develop the local crypto ecosystem.