- Bybit’s rapid ascent to the second-largest global crypto exchange position, fueled by targeting former FTX clients and expanding into European and Russian markets.
- Growth driven by unique services like cross-margin trading with over 160 tokens, catering to a diverse user base.
- Strategic expansions in regulatory-friendly regions like Georgia and Kazakhstan, amid tightening global crypto regulations.
Bybit, the Dubai-based cryptocurrency exchange, has rapidly ascended to become the world’s second-largest, capitalizing on the void left by the collapse of FTX and also from the broader crypto market recovery.
Founded in Dubai, Bybit has capitalized on these opportunities in offering margin trading services that accept digital tokens as collateral, filling the gap left by FTX’s downfall.
Bybit’s trading volume share has doubled to 16% since October, surpassing industry giant Coinbase Global Inc. and trailing only Binance Holdings Ltd. in global rankings for spot and derivatives transactions, according to Kaiko data. The exchange’s growth coincides with a broader recovery in the cryptocurrency market, driven by Bitcoin’s price surge and the introduction of dedicated U.S. exchange-traded funds.
The Bybit crypto exchange has become the world’s second largest after targeting former clients of the defunct FTX platform as well as users in European nations and Russia https://t.co/JlG6EluCSN
— Bloomberg (@business)
June 27, 2024
Chief Executive Officer Ben Zhou attributes Bybit’s rapid ascent to strategic targeting of European markets, which currently account for 30%-35% of its trading volumes. Additionally, the Commonwealth of Independent States, notably Russia, represents approximately one-fifth of Bybit’s business. Despite operating under scrutiny in Russia, Bybit maintains strict sanctions compliance and is expanding its presence in neighboring Georgia and Kazakhstan.
The exchange has also entered new markets, including Brazil, Turkey, and various African nations, amidst evolving regulatory landscapes in Europe under the Markets in Crypto Assets (MiCA) regulation framework. Bybit recently extended its services to Chinese expatriates, supported by legal assessments indicating low risks despite China’s crypto trading ban.
Recognizing the industry’s regulatory challenges, Bybit is reassessing its operations with prime brokers to enhance compliance standards. With over 30 million users globally since its establishment in 2018, Bybit continues to expand its footprint with upcoming offices in the Netherlands, underscoring its global growth strategy.
Bybit’s rapid rise highlights the shifting dynamics in the crypto exchange landscape, propelled by strategic market targeting and regulatory compliance efforts amid the developing global financial standards.
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https://coinniu.com/the-rise-of-bybit-the-crypto-exchange-thats-taking-on-the-giants/
