Top crypto derivatives exchange Bybit has opened its new global headquarters in Dubai. The exchange is moving its headquarters from Singapore where it initially started.
Bybit had hinted about a year ago that it intended moving its headquarters to the United Arab Emirate (UAE) based on internal consensus.
The company finally announced Monday that it was moving to the crypto-friendly mid-eastern city.
“As one of the most progressive digital-assets hubs in MENA and the world, Dubai is optimally positioned to capture the opportunities in the sector,” Ben Zhou, CEO and co-founder of Bybit, said in a press release.
Dubai is already home to several crypto companies, including OKX, Binance, Coinbase among others.
The popularity of the city among crypto companies is due to its policies which are quite friendly towards crypto, in line with the city’s plans of becoming a crypto hub.
Binance, which is the largest crypto exchange by market cap had also through its CEO Changpeng “CZ” Zhao said it was considering building a physical headquarters in Dubai.
The decision comes after several problems the exchange encountered in France and other countries but was warmly received in Dubai.
Bybit is taking a bigger step than all the other exchanges since it is moving its global headquarters to Dubai in spite of the recent tightening of regulations for crypto companies in the UAE.
Regulators Putting Pressure on Crypto
Crypto exchanges have faced regulatory challenges in many jurisdictions globally, and the situation seems to be getting worse.
Bybit isn’t left out of this struggle as it has gotten its fair share of the challenges.
Earlier this month, the authorities in Japan flagged several exchanges, for allegedly operating without a license.
In a warning letter published Friday 4 April, Japan’s Financial Services Agency said foreign exchanges including Bybit, Bitget and others were violating the country’s fund settlement laws.
The letter said the exchanges were “conducting crypto asset exchange business without registration” adding that the list of unregistered traders “does not necessarily indicate the current state of unregistered business.”
Japan’s approach is however not as harsh as the U.S which has cracked down on crypto companies recently, including Binance.
As a result of the pressure, one of the top exchanges in the country, Bittrex has decided to relocate from, a decision that seems to have attracted sanctions from the securities and exchange commission.
Another top cryptocurrency, Coinbase is also considering relocating from the country, should the regulatory climate continue to be hostile.
The Need for Crypto Regulation
Most countries are against the growth of the crypto industry, but they’re also not interested in putting regulations in place to give the industry some much needed direction.
The U.S for example is one country that has not put any regulatory framework in place, but has not hidden its intentions towards the industry.
Places like Dubai that are attracting crypto exchanges have achieved that simply by putting in place guidance for the space.
Thankfully, many other countries are following in the legacy of regulating crypto, which gives the industry a chance to stand in such jurisdictions.
The authorities in Dubai recently announced plans to impose stricter regulations on crypto-related companies, but this is only to increase compliance with international requirements for crypto regulation.
If all countries decide to properly regulate cryptocurrencies and associated companies, both the industry and the governments that benefit from them will win in the long run.
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