Introduction
When considering where to trade cryptocurrencies, safety becomes the most critical factor for any investor. Bybit, one of the world’s second-largest cryptocurrency exchanges by trading volume, has attracted millions of users since its establishment in 2018. But is Bybit safe enough to trust with your digital assets?
This comprehensive review examines everything from security infrastructure to regulatory compliance, helping traders understand whether this platform provides adequate protection for their investments. The cryptocurrency landscape presents unique challenges, and choosing a secure exchange can make the difference between protecting your wealth and losing it to bad actors.
Throughout this analysis, readers will discover what makes Bybit a trusted platform for many, while also learning about potential risks and best practices for staying secure.
What is Bybit?
Bybit is a cryptocurrency exchange platform that serves over 40 million users worldwide, offering spot trading, derivatives, and various crypto services. Founded in 2018, the platform has grown into a major player in the digital asset space, known for its advanced trading tools and deep liquidity.
The Bybit exchange provides access to more than 700 cryptocurrencies, catering to both beginners and professional traders. Users can access the platform through the Bybit app, available for download on mobile devices, or via the standard Bybit login portal on desktop browsers.
Operating from Dubai since relocating in 2023, the platform has evolved beyond simple trading to include features like staking, lending, and copy trading. The company maintains a strong presence in global markets, though availability varies by region due to regulatory considerations.
Regulatory Compliance and Licensing
Understanding where and how Bybit operates legally provides crucial context for evaluating its safety. The regulatory landscape for cryptocurrency exchanges remains complex and constantly evolving.
Current Regulatory Status
Bybit has secured multiple regulatory approvals across different jurisdictions. In September 2024, the exchange obtained provisional approval for a Virtual Asset Exchange Services license from Dubai’s Virtual Assets Regulatory Authority, marking significant progress toward full operational approval in the United Arab Emirates.
The platform also registered as a Virtual Asset Service Provider with the National Bank of Georgia in November 2024, enabling comprehensive crypto services within the country. Additionally, Bybit secured full licensing from Kazakhstan’s Astana Financial Service Authority to operate regulated digital asset exchange, custody, and investment management services.
In February 2025, after more than two years of remediation efforts, French authorities removed Bybit from the Autorité des Marchés Financiers blacklist. The exchange is actively pursuing a Markets in Crypto-Assets Regulation license in Austria to align with EU regulatory frameworks and expand services across member states.
Is Bybit Legal in UK?
The question “is Bybit legal in UK” requires careful explanation. In September 2023, Bybit announced its exit from the UK market in response to new Financial Conduct Authority regulations requiring strict compliance for crypto businesses marketing to UK consumers.
Why is Bybit banned in the UK? The platform chose to suspend services rather than immediately comply with FCA registration requirements. From October 1, 2023, the exchange stopped accepting new UK account applications. By October 8, 2023, existing users could no longer make deposits or open new positions.
Can you use Bybit in the UK today? No, UK residents cannot legally access Bybit services. Does Bybit work in UK through VPNs or other workarounds? While technically possible, attempting to circumvent these restrictions violates both Bybit terms of service and UK regulations, potentially resulting in account freezes and legal consequences.
Can I use Bybit in the UK or can I use Bybit in UK in the future? The platform has not confirmed whether or when it might return to British markets, though the suspension statement mentioned focusing resources on meeting UK regulatory requirements for potential future operations.
Security Features and Infrastructure
Security measures form the foundation of exchange safety. Bybit has implemented multiple layers of protection to safeguard user assets and prevent unauthorized access.
Cold Storage and Wallet Protection
The platform stores the majority of user funds in multi-signature cold storage, keeping assets offline and away from internet-connected systems. This approach significantly reduces exposure to cyber threats, as cold wallets remain inaccessible to remote attackers under normal circumstances.
Multi-signature technology requires multiple authorized parties to approve transactions before funds move, preventing any single individual from unilaterally accessing stored cryptocurrency. This distributed control mechanism adds substantial security against insider threats and compromised accounts.
Two-Factor Authentication and Access Controls
Every user can enable two-factor authentication for account protection. The platform supports various 2FA methods, including authenticator apps and hardware security keys like YubiKey. These additional verification steps prevent unauthorized logins even if passwords become compromised.
Bybit also implements biometric verification options, allowing users to leverage fingerprint or facial recognition for account access. The system monitors user behavior in real time, strengthening authentication requirements when suspicious activity gets detected.
AI-Powered Risk Detection
In the first half of 2024, Bybit’s AI risk engine screened nearly $1 billion in suspicious withdrawal attempts, successfully preventing losses exceeding $79 million in client assets. The system processed 32 million withdrawals while maintaining a fraudulent transaction rate below 10%.
The platform detected abnormal withdrawal requests involving over $940 million during this period, with approximately 8.4% confirmed as attempted fraud. These AI-driven security protocols continuously analyze transaction patterns to identify and block illegitimate fund transfers before completion.
SSL Encryption and Platform Security
All communications between users and Bybit servers utilize SSL encryption, protecting sensitive data during transmission. The platform undergoes regular third-party security audits conducted by reputable cybersecurity firms like Hacken and CertiK.
In August 2024, blockchain auditor CertiK verified Bybit’s comprehensive security measures, awarding the exchange a 10/10 trust score on CoinGecko. These independent assessments evaluate infrastructure vulnerabilities and ensure ongoing adherence to security best practices.
Track Record and Reputation
A platform’s history reveals much about its reliability and trustworthiness. Examining Bybit’s operational track record provides essential context for safety evaluation.
Years of Operation and Growth
Since launching in 2018, Bybit has maintained continuous operations for over six years, building a user base exceeding 40 million traders globally. The platform consistently ranks as the world’s second-largest cryptocurrency exchange by trading volume, demonstrating sustained market confidence.
Prior to February 2025, research indicated that Bybit had never experienced major security incidents involving hacks, data leaks, or user fund losses. This clean track record spanning multiple years contributed to the platform’s reputation as a secure trading venue.
The February 2025 Security Incident
On February 21, 2025, Bybit suffered the largest cryptocurrency theft in history when hackers stole approximately $1.5 billion in Ethereum tokens. The FBI attributed the attack to North Korea’s Lazarus Group, sophisticated state-sponsored cyber criminals responsible for numerous crypto heists.
The breach occurred during a routine transfer from cold storage to warm wallets. Attackers compromised a developer at Safe{Wallet}, a third-party multi-signature platform Bybit used for transaction management. By injecting malicious JavaScript code into the Safe interface, hackers altered what Bybit employees saw when approving the transfer, redirecting funds to attacker-controlled addresses.
Recovery and Response
Within 72 hours of the breach, Bybit fully replenished its reserves through emergency funding from firms including Galaxy Digital, FalconX, and Wintermute. The platform secured nearly 447,000 ether tokens, ensuring all customer assets remained fully backed with withdrawal services continuing uninterrupted.
A proof of reserves audit conducted by Hacken confirmed successful restoration, verifying that all major assets including Bitcoin, Ethereum, Solana, Tether, and USDC exceeded 100% collateralization ratios. Importantly, no customer funds were lost—Bybit absorbed the entire $1.5 billion loss itself.
The exchange launched a recovery bounty program offering up to 10% rewards for assistance in recovering stolen assets. This transparent crisis handling demonstrated organizational commitment to protecting user interests even when facing catastrophic losses.
Community Feedback and Market Position
Trading volume and user growth have continued following the incident, suggesting maintained market confidence. The platform’s rapid response and full reserve replenishment contrasted sharply with previous exchange failures like FTX, where customers lost access to their funds permanently.
Fund Safety Measures
Beyond security infrastructure, specific mechanisms protect user funds from both external threats and platform insolvency.
Proof of Reserves Transparency
Following industry-wide concerns after the FTX collapse in 2022, Bybit implemented Merkle Tree-verified proof of reserves available for public monitoring in real time. This transparency allows users to verify that the exchange maintains sufficient assets to cover all customer deposits.
In June 2024, Bybit completed its 11th proof of reserves audit verified by Hacken, confirming reserves exceeded user deposits by over 100% for 40 major cryptocurrencies. These regular third-party audits provide ongoing assurance of platform solvency.
Withdrawal Policies and Procedures
All withdrawal requests undergo manual verification processes, ensuring unauthorized transactions cannot proceed undetected. When unusual withdrawal patterns emerge, the system automatically enforces enhanced authentication protocols to prevent illegitimate fund transfers.
Users wondering how to withdraw from Bybit or how to withdraw money from Bybit will find the process straightforward while remaining secure. After submitting withdrawal requests, additional verification steps may apply depending on transaction size and account history.
Segregation and Insurance
The platform maintains segregation between operational funds and customer deposits, preventing company financial difficulties from directly impacting user balances. While Bybit doesn’t offer government insurance like traditional banks, the proof of reserves system provides alternative transparency mechanisms.
The exchange maintains substantial insurance funds to cover potential losses from unforeseen events. The February 2025 incident demonstrated this commitment when Bybit absorbed the entire $1.5 billion hack loss without passing costs to customers.
Risk Factors to Consider
Despite strong security measures, using any centralized cryptocurrency exchange involves inherent risks that users should understand and evaluate.
Regulatory Uncertainty
The global regulatory landscape for cryptocurrency remains fluid and unpredictable. Different jurisdictions implement varying requirements, creating challenges for platforms operating internationally. Changes in regulations can force sudden service suspensions, as occurred with UK operations in 2023.
Users in regions with evolving crypto regulations face potential access disruptions if governments implement restrictive policies. The lack of harmonized international standards means regulatory risk remains elevated compared to traditional financial services.
Custodial Risk and Exchange Control
Using Bybit or any centralized exchange means entrusting the platform with custody of your assets. Unlike self-custody solutions where users maintain exclusive control through private keys, exchange accounts create counterparty risk—dependence on the platform’s continued operation and solvency.
The February 2025 hack, while handled transparently with full user compensation, demonstrated that even well-secured centralized platforms face sophisticated threats. Storing large amounts long-term on exchanges increases exposure to potential security breaches, operational failures, or regulatory seizures.
Leverage Trading Dangers
Bybit offers derivatives trading with leverage up to 100x on select pairs, amplifying both potential gains and losses. Inexperienced traders can rapidly lose entire account balances through leveraged positions, especially during volatile market conditions.
These high-risk trading products require thorough understanding and risk management strategies. The platform implements safeguards, but users remain responsible for position management and liquidation prevention.
Jurisdictional Restrictions
The exchange restricts service access in multiple countries including the United States, United Kingdom, Singapore, China, Canada, and several sanctioned nations. Users attempting to circumvent these restrictions through VPNs risk account termination and fund freezing.
Regulatory compliance requires Bybit to enforce geographic limitations strictly. Operating from prohibited jurisdictions violates terms of service and potentially applicable laws in both the user’s location and the platform’s operating regions.
Platform-Specific Vulnerabilities
The February 2025 breach highlighted supply chain security risks inherent to exchanges using third-party services. Even when direct platform security remains strong, dependencies on external providers create potential attack vectors.
Complex technical infrastructure involving multiple systems, interfaces, and integrations increases the total attack surface. Users must recognize that comprehensive security requires not just exchange protection, but security across every service and platform component.
User Protection Features
Beyond technical security, various policies and services provide additional user protection layers.
Customer Support Quality
Bybit maintains 24/7 customer service through multiple channels including live chat, email, and comprehensive help center resources. Multilingual community support serves users globally, reducing language barriers when assistance becomes necessary.
Response times and service quality significantly impact user experience during security concerns or account issues. Available support channels help users quickly address problems before they escalate into larger losses.
KYC and AML Policies
The platform implements Know Your Customer verification requirements aligned with international anti-money laundering standards. Standard KYC verification provides access to fiat services, peer-to-peer trading, and increased withdrawal limits up to 1 million USDT daily.
Advanced KYC raises limits to 2 million USDT and grants access to additional services like the Bybit card and high-value transactions. These verification tiers balance security needs with user convenience, allowing basic crypto withdrawals without KYC while requiring verification for expanded services.
Account Security Tools
Users can implement withdrawal address whitelisting, ensuring funds only transfer to pre-approved addresses. This feature primarily protects against user error and phishing attacks attempting to redirect withdrawals.
The platform offers one-click account freezing, allowing users to immediately lock accounts if they perceive security risks. Anti-phishing codes help users identify legitimate Bybit communications versus fraudulent impersonation attempts.
Session monitoring tracks account access patterns, alerting users to suspicious login attempts from unfamiliar devices or locations. These tools empower users to actively participate in protecting their accounts rather than relying solely on platform security.
Comparison with Other Exchanges
Evaluating Bybit’s safety requires context from comparing its security approach to competing platforms.
Security Measure Benchmarking
Major exchanges including Binance, Coinbase, and Kraken implement similar foundational security features like cold storage, multi-signature wallets, and two-factor authentication. Bybit’s AI-powered risk detection systems represent relatively advanced fraud prevention compared to some competitors.
The proof of reserves transparency matches industry leaders who adopted similar practices after FTX’s collapse. However, some competitors undergo more rigorous independent audits with publicly disclosed methodologies.
Regulatory Positioning
Compared to Coinbase’s comprehensive US regulatory compliance or Kraken’s multi-jurisdictional licensing, Bybit operates with more limited regulatory approvals. This positioning offers flexibility but potentially less regulatory oversight and consumer protection compared to heavily regulated alternatives.
Conversely, the exchange’s Dubai base and emerging market licenses position it differently from exchanges that have exited or restricted services in multiple major markets. Users must weigh these regulatory trade-offs based on their priorities and risk tolerance.
Unique Safety Features
Bybit’s P2P Shield program provides financial protection to eligible users encountering fraudulent peer-to-peer transactions, distinguishing the platform from many competitors lacking similar safeguards for decentralized trading features.
The comprehensive security upgrade verified by CertiK in August 2024 demonstrates ongoing investment in advanced protection mechanisms. However, the February 2025 breach reveals that even industry-leading security can face unprecedented sophisticated attacks.
Best Practices for Using Bybit Safely
Users share responsibility for maintaining account security. Following best practices significantly reduces personal risk exposure.
Enable All Security Features
Activating two-factor authentication represents the single most important security measure for any exchange account. Users should implement 2FA for login, withdrawals, password resets, and security setting changes rather than selective activation.
Consider hardware security keys like YubiKey for enhanced protection beyond smartphone authenticator apps. These physical devices provide superior security against phishing and remote attacks targeting 2FA codes.
Implement Withdrawal Whitelisting
Creating and maintaining a whitelist of approved withdrawal addresses prevents accidental transfers to incorrect destinations. While primarily protecting against user error, this feature also blocks certain phishing attacks attempting to redirect funds.
The initial setup requires careful verification of intended recipient addresses. Once configured, the whitelist provides substantial protection against both mistakes and certain attack vectors.
Avoid Storing Large Amounts Long-Term
Cryptocurrency best practices recommend minimizing exchange storage, particularly for long-term holdings. While Bybit implements strong security, centralized platforms create single points of failure that self-custody solutions avoid.
Transfer holdings to hardware wallets or other self-custody solutions for amounts you’re not actively trading. This approach limits exchange risk exposure to only the funds necessary for immediate trading activities.
Practice Regular Security Reviews
Periodically review account security settings, active sessions, API keys, and recent activity. Regular monitoring helps detect unauthorized access quickly, minimizing potential damage from compromised accounts.
Update passwords regularly using strong, unique credentials never reused across different platforms. Consider password managers to maintain secure credentials without memorization difficulties.
Stay Vigilant Against Phishing
Exercise extreme caution with any communications claiming to originate from Bybit. Verify URLs carefully before entering credentials, watching for subtle misspellings or domain variations used in phishing attempts.
The platform will never request passwords, 2FA codes, or private keys through email or direct messages. Legitimate Bybit news and communications can be verified through official channels before taking action.
Bybit Fees and Considerations
While not directly related to safety, understanding fee structures helps users make informed decisions about platform usage.
Trading Fee Structure
Bybit fees operate on a maker-taker model with tiered rates based on trading volume. The competitive fee schedule attracts high-volume traders while remaining accessible for smaller accounts. VIP tier programs offer reduced rates for users generating substantial trading volume.
Understanding fee implications helps users calculate total trading costs accurately. Hidden costs like conversion spreads and funding rates for leveraged positions can impact profitability significantly.
Bybit Referral Code Benefits
Users can access promotional benefits through Bybit referral code programs, potentially reducing initial trading costs. These promotions typically offer fee discounts or bonuses for new users meeting specified conditions.
While referral programs provide value, users should prioritize security and suitability over promotional incentives when selecting trading platforms.
Conclusion
So, is Bybit safe? The answer involves nuanced consideration of multiple factors rather than a simple yes or no.
The platform implements robust security infrastructure, including cold storage, multi-signature wallets, AI-powered fraud detection, and regular third-party audits. Proof of reserves transparency provides ongoing verification of solvency. The exchange maintains regulatory approvals in multiple jurisdictions and continues pursuing additional licenses.
However, the February 2025 security incident—despite full customer compensation—demonstrates that even sophisticated security faces evolving threats. Centralized exchanges inherently create counterparty risk that self-custody solutions avoid. Regulatory uncertainty and jurisdictional restrictions present ongoing challenges.
Is Bybit legit? Yes, Bybit operates as a legitimate cryptocurrency exchange with a substantial user base, trading volume, and regulatory engagement. The platform’s transparent handling of the 2025 breach and complete user fund protection contrasts sharply with failed exchanges where customers permanently lost deposits.
For active derivatives traders seeking advanced tools, deep liquidity, and competitive fees, Bybit offers compelling features backed by generally strong security practices. The platform suits experienced users comfortable with centralized exchange trade-offs and implement proper personal security measures.
Conservative investors prioritizing maximum security might prefer more heavily regulated alternatives or self-custody solutions for long-term holdings. Users should carefully evaluate their risk tolerance, trading needs, and regional regulatory considerations when deciding whether Bybit aligns with their requirements.
Ultimately, using any cryptocurrency platform safely requires combining exchange security with personal responsibility—enabling all protection features, limiting stored amounts, staying vigilant against threats, and continuously monitoring account activity. The Bybit review presented here provides the information needed to make informed decisions about whether this exchange meets individual safety standards and trading objectives.