Bybit is one of the world’s largest cryptocurrency exchanges, specializing in perpetual futures and derivatives trading. Founded in March 2018 by Ben Zhou (former GM at XM.com), Bybit is registered in Dubai (relaunched there after a regulatory pivot from Hong Kong in 2022) and has grown to be a top-3 crypto derivatives platform globally by open interest, competing directly with Binance and OKX.
Platform Overview
Core Products
Derivatives (Bybit’s origin and core):
- Perpetual contracts: BTC/USD, ETH/USD, and hundreds of altcoin perpetuals with up to 100x leverage
- USDT-margined vs. Inverse contracts: Standard USDT-settled and crypto-settled (inverse) perpetuals — Bybit was early in offering both
- Options: BTC and ETH European-style options on a dedicated interface
Spot Trading:
- Added Spot trading in 2021, with major pairs and DeFi tokens
- Spot Grid Trading for automated market-making strategies
Bybit Earn:
- Flexible and fixed savings products
- Liquidity mining and DeFi vaults (accessed via Bybit’s interface)
Copy Trading:
- Launched in 2022; allows users to automatically copy top traders’ positions
History
| Year | Events |
|---|---|
| 2018 | Bybit founded by Ben Zhou in Singapore; focus on BTC/USD perpetuals |
| 2019 | Launches inverse perpetual contracts (coin-margined); gains reputation for matching engine reliability |
| 2020 | Expands altcoin perpetuals; launches USDT-settled contracts |
| 2021 | Spot market launches; Bybit expands to retail DeFi products |
| 2022 | Relocates headquarters to Dubai following Hong Kong regulatory uncertainty; obtains Dubai VARA virtual asset license |
| 2022 | Bybit rises to 2nd largest crypto derivatives exchange by some metrics during FTX collapse — many FTX refugees migrate to Bybit |
| 2023 | Reaches $1B+ daily derivatives volume; becomes a major sponsor of Red Bull Racing Formula 1 team (extends multi-year deal) |
| 2023 | Sued by Ontario Securities Commission (OSC) for operating without registration in Canada; blocked for Ontario users |
| 2024 | Enforcement action by various EU regulators; exits France, Spain, Netherlands |
| 2025 | Remains top-3 derivatives exchange globally despite ongoing regulatory friction |
Matching Engine Reputation
Bybit built its early reputation on matching engine performance. During the volatile March 2020 Bitcoin crash (“Black Thursday”), competitor BitMEX went down for maintenance at the peak of panic — Bybit stayed online. This event significantly boosted Bybit’s credibility with professional traders.
$BIT Token
Bybit launched its native token $BIT through the BitDAO decentralized autonomous organization (now Mantle). While Bybit the exchange is centralized, it seeded and supported BitDAO as a DeFi governance initiative with a large treasury. BitDAO later rebranded to Mantle in 2023, focusing on Ethereum L2 scaling.
Regulatory Status
Bybit has faced a fragmented global regulatory environment:
- Dubai/UAE: Operating legally under Dubai VARA license
- US: Geoblocked — US persons are prohibited from using Bybit
- Canada: Ontario residents blocked following OSC lawsuit
- EU: Exited several EU markets due to MiCA compliance pressures
- UK: Not registered with FCA; UK users are officially restricted
Common Misconceptions
“Bybit is only for leverage degens”
Early in its history, yes—Bybit was derivatives-first with high leverage. Since 2021 it has significantly expanded spot trading, earn products, and DeFi integrations, making it a broader exchange platform.
“Bybit was involved in FTX’s collapse”
No. Bybit was a competitor that benefited from FTX’s collapse as users migrated. Bybit had no financial exposure to FTX. It moved quickly to publish proof-of-reserves in the aftermath.
Social Media Sentiment
Bybit has a strong following among active derivatives traders and is particularly popular in Asia and the Middle East. Its trading tournaments, copy trading platform, and high leverage draw a retail trader audience that skews younger. Reddit and Twitter crypto trading communities often compare Bybit favorably on trading fees and UX vs. OKX, though both trail Binance in overall liquidity. Critics note its regulatory struggles and the restriction from important markets.
Related Terms
Research
- Bybit. (2023). About Bybit: Company Overview. Bybit.com.
- Ontario Securities Commission. (2023). OSC Enforcement Action Notice: Bybit. OSC.ca.
- Cointelegraph. (2022). Bybit Survives FTX Chaos to Rise as a Top Derivatives Exchange. Cointelegraph.