In a significant development, Bybit, the third largest cryptocurrency exchange globally, has announced its successful acquisition of a license to operate as a cryptocurrency exchange and custody service in Cyprus. The license enables Bybit to offer trading between cryptocurrency and fiat currency pairs and provide additional crypto-related financial services.
The Strategic Importance of Cyprus for Crypto Exchanges
Cyprus, a Mediterranean island with a population of 1.2 million, is rapidly becoming a hotspot for cryptocurrency activities. This is partly due to proactive public sector actions to foster an environment conducive to the growth of new disruptive technologies, including blockchain.
Ben Zhou, co-founder and CEO of Bybit, underscored the significance of this expansion in a recent press release. “The Crypto Ark has landed in Cyprus,” Zhou announced, emphasizing the role of cryptocurrency as an alternative to traditional financial systems.
Interestingly, the journey of Cyprus towards becoming a crypto-friendly nation has been a roller coaster ride. A decade ago, the Cypriot central bank issued warnings against using cryptocurrencies. However, in 2021, Cyprus indicated its intention to embrace blockchain technology and cryptocurrencies, forwarding a bill on Distributed Ledger Technology Law.
Despite this positive momentum, the Cypriot Ministry of Finance decided in April 2023 not to proceed with the bill. Yet, the recent development with Bybit indicates that the tide may change once again in favor of crypto-related activities in Cyprus.
Comparison to Other Mediterranean Crypto Hotspots
While Cyprus is gradually making its mark in the crypto space, it still has a long way to go to match the level of adoption seen in Malta, another Mediterranean nation. Malta, often referred to as “Blockchain Island”, boasts three times as many blockchain-related jobs per capita. Bitcoin veterans, including Adam Back, frequently praise the thriving crypto environment in Malta.
The crypto industry is notorious for its dynamic and rapidly changing landscape, and Cyprus is no exception. Binance, another crypto industry titan, recently decided to deregister in Cyprus. Originally headquartered in China, Binance now operates offices in various crypto-friendly locations worldwide such as Dubai and Bahrain, and has chosen to withdraw from Cyprus to focus on larger markets.
Despite these changes, Bybit’s commitment to expanding its operations in Cyprus signals a positive outlook for the island’s crypto industry. The impact of this development on Cyprus’ status as a crypto hub and the ripple effects on the global crypto landscape will be intriguing to watch in the coming years.
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