Bybit In-Depth Review | Is Bybit Reliable? A Complete Explanation of Compliance Risks, Trading Conditions, and Security Incidents

Brand Overview: Expansion and Controversy

Bybit was founded in 2018 and is headquartered in Dubai, UAE . Initially focused on the derivatives contract market, it quickly grew into one of the top three contract trading platforms globally.

• Compliance attempt : In 2025, Bybit EU cooperated with Nasdaq to use its monitoring system to track 60 billion transactions and actively connected to the EU MiCAR (Source: CryptoNinjas ).

• Background of the dispute : It has been banned by regulators in the United States, Japan and other countries. Indian users are required to pay an 18% GST transaction tax, and the compliance path is complicated.

• Market strategy : Targeting the MENA, Middle East, and Southeast Asian markets, rapidly acquiring users through sports sponsorship and KOL community operations.

Account system and trading conditions

Compared with Coinbase's fiat currency entry, Bybit focuses more on derivatives and leveraged tools .

Regulation and Compliance

• Dubai VARA : Bybit has obtained a pre-approved license from the Virtual Asset Regulatory Authority (VARA).

• EU MiCAR : Cooperate with Nasdaq to establish a compliance trading monitoring system.

• Historical bans : Services cannot be provided legally in the United States, the United Kingdom, and Japan, and there are still gaps in compliance.

Overall conclusion: Bybit is in a "semi-compliant" state and its listing status is still weak compared to Coinbase.

Product matrix and features

• Derivative contracts : perpetual contracts for mainstream currencies such as BTC, ETH, and SOL.

• Tokenized assets : Support deposits and withdrawals of gold tokens XAUT.

• Mantle × Bybit Roadmap : Multi-scenario applications of MNT Token (payment, savings, DeFi).

• Financial services : Bybit Card (crypto payment card), Earn coin deposit and financial management.

Technical execution and system stability

• Matching engine : supports 300,000 matches per second and has good stability under high concurrency.

• API interface : Provides high-performance WebSocket for quantitative teams.

• Downtime record : There were several delays during periods of high volatility from 2021 to 2023, with a lot of feedback from the user community.

Security and risk control cases

• Major hack : In February 2025, Bybit was hacked, stealing approximately $150 million in ETH (Source: CoinDesk). Officials compensated all customers within 72 hours, boosting user trust.

• Risk control measures : 98% of assets are stored in cold wallets, protected by multi-signature hot wallets.

• Disadvantages : Although the security compensation was quick, the incident itself exposed system defense vulnerabilities.

Deposit and Withdrawal and Payment Methods

• Deposit : Supports cryptocurrency transfers and third-party payment methods (MoonPay, Banxa).

• Withdrawal : Withdraw money on the chain, the arrival time is fast but the gas cost is higher.

• Fiat currency channel : Bank cards/Apple Pay are available in some countries, but overall it is weaker than Coinbase.

Regional market strategy and user profile

• Middle East and Africa : Relying on the Dubai headquarters, we focus on the MENA market.

• Southeast Asia : Collaborate with local communities and KOLs to cultivate a high-leverage retail investor group.

• Europe : MiCAR compliance is driving business expansion, but is still in the testing phase.

User portraits show that Bybit is more attractive to young traders who pursue high leverage and short-term returns .

IB cooperation mechanism and alliance plan

Bybit has a global IB (Introducing Broker) cooperation program:

• The rebate rate can be up to 50%.

• Supports multi-level recommendation networks.

• Cooperate with regional brokers to promote and expand market penetration.

This has enabled Bybit to expand rapidly in the retail market, but it has also been criticized for "over-reliance on rebate marketing."

Customer support and multilingual services

• Language coverage : English, Chinese, Spanish, Portuguese, Arabic, Indonesian, etc. 15+ languages.

• Contact Information :

• Email: [email protected]

• Online Ticketing & Live Chat

• Community channels : Discord and Telegram are highly active.

Media and user word of mouth

• Media reports : Bloomberg and Reuters highlighted Bybit’s Nasdaq cooperation and hacker compensation incident, creating a dual image of “positive + negative coexistence”.

• Community Feedback :

• Advantages: strong contract liquidity and user-friendly trading interface.

• Disadvantages: It cannot be used in some countries and regulatory risks exist in the long term.

Risk Warning

• Compliance risks : Due to the absence of the US and UK markets, if regulations are tightened in the future, the company may face forced liquidation.

• Security risks : Hacking incidents expose technical weaknesses.

• Market risk : Leveraged tools may cause retail users to quickly liquidate their positions.

Multi-dimensional scoring

• Regulatory Compliance: 6/10 — Compliance efforts in some markets, but lack of licenses in core areas.

• Trading conditions: 8/10 — Derivatives offer significant advantages and low fees.

• Security: 7/10 — Major hacking incidents detracted from the score, but the compensation mechanism is good.

• Deposit and Withdrawal Experience: 6/10 — Crypto payments are smooth, but fiat currency channels are weak.

• User reputation: 7/10 — The contract experience is good, but long-term trustworthiness is questionable.

• Market strategy: 8/10 — Sports sponsorship + regional penetration have obvious effects.

• Technical Execution: 7/10 — The matching engine is powerful, but historical downtime has affected its reputation.

• IB cooperation mechanism: 7/10 - fast promotion, but high risk of rebate model.

Overall score: 7.0/10 (above average overall, but with compliance and security concerns)