Is Bybit Legal in Australia?

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Is Bybit Legal in Australia?

Is Bybit legal in Australia? It’s a reasonable question to ask about this popular crypto derivatives exchange. In this review, we’ll take a look at Bybit’s regulatory status and whether Aussies can legitimately trade on the platform without running into any legal troubles down under.

We’ll discuss the licenses and registrations Bybit holds from authorities in other countries that proves their legitimacy as a crypto platform.

You’ll also get the full download on what Bybit actually is, the trading products they offer, and an overview of the exchange based on our team’s extensive review.

By the end, you’ll have a clear picture of Bybit’s legal standing in Australia and whether it’s an acceptable option for your cryptoΒ  trading needs.

Let’s now find out if using Bybit puts you on the right or wrong side of Australian laws!

What is Bybit?

For those not familiar, Bybit is a crypto derivatives exchange that launched in 2018. It’s headquartered in Dubai and the CEO is Ben Zhou. Aussies can trade things like crypto futures, perpetual contracts, and options through the platform’s user-friendly apps and websites.

We’ve actually done an extensive review of Bybit covering all the key details like fees, security, tradable assets and more. So I’d recommend giving that a read if you want the full lowdown on the exchange and what it offers.

However, the question remains – does Bybit operate appropriately enough under Australia’s specific regulatory context to consider them a legitimate choice locally?

Read also!Β Bybit Card Review

Is Bybit Legal in Australia?

Is Bybit Legal in Australia?

Bybit is not officially regulated or licensed to operate in Australia by the Australian Securities and Investments CommissionΒ (ASIC) and Β Australian Prudential Regulation AuthorityΒ (APRA).

So, can Australians use Bybit legitimately even as the platform does not hold an Aussie license? Yes!

As of 2024, there are no specific laws in Australia that prohibit citizens from using offshore cryptocurrency exchanges like Bybit. A lot of other big crypto exchanges operate the same way here. This means that it’s totally legit for Aussies to use Bybit.

While they don’t have an Aussie license yet, Bybit holds a Virtual Assets License from Dubai’s Virtual Assets Regulatory Authority (VARA). They are also registered with the Cyprus Securities and Exchange Commission, and have a license from the Astana Financial Services Authority (AFSA) in Kazakhstan. These licenses show they’re a properly regulated and legitimate crypto platform.

So feel free to sign up on Bybit without worries! But if you’d rather stick to locally regulated options, check out our guide to the best crypto exchanges for Australians.

At the end of the day, Bybit is safe for Aussies to trade on based on their proper licensing from VARA, CySEC and AFSA, plus the lack of restrictions here. The choice is yours!”

Bybit’s Security

Regulation aside, security and legitimacy concerns represent other potential worries for Australian traders evaluating Bybit. However, on these core exchange criteria, Bybit makes a compelling case to ease user doubts.

Bybit utilizes industry-best security protocols to protect user assets and data. This includes key measures like cold wallet storage, where most funds are kept fully offline, multi-signature technology, and built-in DDoS attack prevention. Such robust systems have helped enable over 5 years of hack-free operation as Bybit has grown.

Additional legitimacy indicators include sky-high trading volumes, recently reaching $18.5 billion in 24 hours, demonstrating real organic demand. Bybit also now serves over 21 million registered users globally showing broad mainstream adoption.

Compared to even the largest Australian centralized exchanges, Bybit boasts security and technical infrastructure matched by few competitors anywhere. While homegrown Aussie platforms may seem more familiar, their centralized nature can present single points of failure. Decentralized exchanges like Bybit may arguably provide safer architecture less prone to attack.

Given security realities and tremendous legitimate adoption metrics, Bybit checks the boxes necessary to be considered a genuine, reliable industry leader. This should further assure Australian traders of the platform’s credibility.

How Australians Can Verify a Legit Crypto Exchange

How Australians Can Verify a Legit Crypto Exchange

When it comes to crypto exchanges, doing your due diligence is crucial – especially for Aussies where the regulatory landscape is still pretty murky. Here are some tips for verifying if an exchange is legit and safe to use:

  1. AUSTRAC Registration – First, check if they are registered with AUSTRAC, which is required for crypto businesses operating in Australia. Their registration details should be listed on the official AUSTRAC website.
  2. Licenses & Registrations – Next, look at what licenses or registrations they hold from other reputable regulators worldwide. For example, Bybit has licenses from:
  • Dubai’s Virtual Assets Regulatory Authority (VARA)
  • The Cyprus Securities and Exchange Commission
  • Kazakhstan’s Astana Financial Services Authority (AFSA)

Proper licensing shows they follow rules set by financial watchdogs.

  1. Security Practices – Scrutinize their website and terms to ensure they have robust security like:
  • Cold storage for crypto assets
  • KYC/AML procedures
  • Fund segregation
  • Secure APIs
  1. Leadership & Backers – Research their executive team and investors. Are these proven experts in crypto/finance? Shady founders are a major red flag.
  2. Reputation – Finally, read reviews from trusted crypto communities and watch out for recurring complaints about missing funds, poor service, technical issues etc. A stellar reputation is key.

If an exchange ticks all those boxes, you can feel much more confident trading with them as an Aussie.

Final Verdict

While Bybit is not officially regulated or licensed in Australia by bodies like ASIC and APRA, there are no explicit laws prohibiting Australians from using the platform.

Given Bybit’s proper licensing elsewhere and the lack of outright restrictions in Australia, I would conclude that it is legitimate for Australians to use and trade on the Bybit platform. However, users should be aware that there are some legal gray areas since Bybit is an offshore exchange without local Australian regulation.

Ultimately, Australians can choose to sign up and trade on Bybit at their own discretion, understanding there is a degree of legal uncertainty compared to locally regulated exchanges. But Bybit appears to be making a good faith effort at compliance, and their global licensing suggests they are a credible cryptocurrency derivatives platform, even for Australian users.

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1. Is Bybit legit in Australia?

Bybit isn’t officially regulated in Australia, but it’s totally legit for Aussies to use. They hold proper crypto licenses from places like Dubai, Cyprus and Kazakhstan which shows they’re a legitimate platform.

2. Can you use Bybit in Australia?

Yes, Australians are able to access and trade on Bybit platfom.

3. Does Bybit accept Australian clients?

Bybit accepts clients from Australia and supports trading in AUD currency pairs such as BTC/AUD. Their website and customer support also cater to English speakers from across the world, including Australia.

4. Is my money safe using Bybit from Australia?

Bybit implements industry-leading security to protect user funds and data. Significant measures include cold wallet storage, DDoS protection, and more. Bybit’s 5+ year hack-free run inspires confidence, but users must weigh regulatory risks that could impact fund access.

5. Why might I choose Bybit versus an Australian exchange?

For traders wanting features like extremely high leverage up to 100x and access to perpetual swaps or inverse futures, Bybit provides a compelling platform option compared to more limited local Australian exchanges. Just be aware of potential legal gray areas.