In the competitive world of cryptocurrencies, Bybit has gained widespread popularity as a cryptocurrency trading platform. However, this exchange has certain weaknesses that could put the interests and security of its users at risk.
This is perfectly reflected in the recent report of Cointelegraph Research, the New Crypto Standard. In this report, nine exchanges are examined around such important points as security, transparency, regulatory compliance and legal consumer protection. As well as the quality of customer service, services provided, their quality and accessibility.
This comparison leaves Bybit in position number 4 in the table. But how does an exchange with Bybit's characteristics end up in such an average position? Here you will know the answer to this and many other questions about one of the most recent exchanges in the crypto world.
Bybit, an average exchange
The story of Bybit begins in March 2018, when Ben Zhou founded Bybit, in the United Arab Emirates, another well-known tax haven. Initially, Bybit began its operations as a cryptocurrency derivatives platform (futures, perpetuals, among others).
This choice already came at a huge cost for Bybit: not being able to operate in regions such as the United States, mainland China, Singapore, Quebec (Canada) and some other jurisdictions.
The reasons? The regulations, which in these regions prohibit not properly regulated actors from providing these services. Even in countries like Brazil, Bybit is prohibited from operating certain products due to its regulatory issues. In fact, Bybit is, after Binance, the exchange with the most regulatory problems in Cointelegraph Research's comparison.
Despite everything, Bybit has managed to carve out a space within the crypto sector, but not before presenting problems along the way.
Transparency and regulation, Bybit's first weak point
The first criticisms of Bybit begin with the issue of transparency and regulation. Starting with its location, the fact that Bybit is located in the United Arab Emirates (UAE) allows the company to bypass certain transparency practices. Hence, for example, Bybit does not offer access to its management reports, business audits and public information about its finances is limited..
In addition, UAE is recognized as a tax haven by the FATF organization, which places its operations in the crosshairs of the largest anti-money laundering and counter-terrorism financing organization in the world. To this we must add that, The jurisdiction is pro-company, so in case of problems, Bybit will have conditions in its favor in favor of protecting its users at a legal level.
This of course also impacts the legal protection of users. Remembering that the UAE is a pro-company jurisdiction, it is clear that the legal protection of users comes second.
platform security
At this point, Bybit has faced criticism. First of all, Bybit has Proof of Reserves that are public and are updated regularly. However, it is unknown who carries out this process, which should be carried out by a trusted third party that offers guarantees of veracity and auditing.
Another important part of the criticism focuses on the fact that, Bybit lacks insurance against theft of crypto funds from exchanges. This means that if the exchange suffers a hack and theft of funds, they will be lost forever, and users will pay the consequences for this. Regarding the security of fiat funds, Bybit guarantees by law 100% of its users' fiat funds.
Another weak point to highlight about Bybit is the platform's cybersecurity. For example, Bybit lacks ISO 22301 certification, which guarantees the exchange's ability to continue its operations in cases of emergencies (e.g. a hack to the exchange). Because of that, Bybit could present new regulatory problems when operating in Europe, since the MiCA law establishes that exchanges must have such endorsement to operate on European soil.
User Experience
Finally, in terms of user experience and services, Bybit once again presents a mixed situation.
Firstly, its interface is rated as the fourth best in the comparison, highlighting that its services are accessible and the interface is not particularly complex for new users. But it fails to offer quality user support, since it is very poorly rated in spaces like TrustPilot.
Regarding the services it provides, Bybit stands out for offering professional trading (with more than 800 currencies), tools such as futures, perpetual, leveraged, P2P trading, a launchpad, crypto-loans, staking (with 6 currencies) and card (for Mastercard).
The problem again is regulation. Tools such as futures, perpetuals, leveraged and P2P are elements that can greatly boost the operational risk of an exchange, so operating funds on said exchanges and then using them in regulated spaces (such as Europe) can lead to users facing problems. regulatory.
For example, if you have funds in Bybit and do a P2P to a European bank account, your P2P operator may be on a FATF list (remember, the UAE is on the list) and the bank will freeze your funds. You will not be able to withdraw the funds until you prove the legal origin of the funds, and you will not be able to make a claim at Bybit because you have made a P2P and they only offer the service under your own responsibility.
Why Bit2Me is the best alternative?
If the above has made you look for a better alternative, we understand. In that case, the best alternative that we can introduce you to is Bit2Me, and here we will clearly tell you the reasons for this.
More security
First and foremost, Bit2Me prioritizes the security of its users, implementing rigorous cybersecurity measures and adopting cutting-edge technologies to safeguard digital assets. Its proactive approach to security provides users with the peace of mind needed to engage in cryptocurrency trading safely. Thanks to this, Bit2Me in its nine years of existence has never been hacked, giving its users assurance that their funds are properly protected.
In addition to this, Bit2Me protects its users by respecting European regulations regarding operations. First, Bit2Me has theft insurance that protects the platform for up to 150 million euros. Thus, in the event of an attack, Bit2Me can quickly respond to its users by replacing any losses they may have suffered due to the attack. Second, because Bit2Me guarantees 100% of funds in fiat, thanks to its association with Pecunia, a service that is duly regulated by the Bank of Spain.
Exceptional customer service
Bit2Me stands out for its exceptional customer service, providing users with responsive and efficient support. The platform is committed to resolving user concerns in a timely manner, ensuring a smooth experience.
All this accompanied by the wide range of services that include staking, loans, trading, crypto wallets and launchpad. This diversity of services provides Bit2Me users with greater versatility and opportunities to maximize their cryptocurrency investments.
In summary, evaluating Bybit's specific weaknesses reveals the importance of considering superior alternatives like Bit2Me. With its focus on security, transparency, clear fees, excellent customer support and a wide range of services, Bit2Me is positioned as the ideal choice for those looking for a reliable and comprehensive cryptocurrency exchange.
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