Is Bybit Legal in Philippines? Is Bybit Safe?
Choosing a trustworthy cryptocurrency exchange is crucial as it directly impacts the safety and security of your digital assets. The high risk of scams in this area necessitates extreme caution from users.
Our analysts have noticed a growing interest in Bybit services among users in the Philippines. However, questions remain regarding its safety and legal status within the Philippines. Traders Union experts have addressed this concern by crafting a detailed review that explores both the pros and cons of using Bybit.
So, let us tell you if Bybit is allowed in the Philippines and if it's safe to use for trading.
Is Bybit legal in Philippines? Does it have a license?
Bybit is a regulated exchange that provides services in most countries worldwide, except for those under international sanctions, such as North Korea, Iran, Syria, Cuba, and regions like Crimea, Donetsk, and Luhansk. Restrictions may also apply based on requests from local regulators. We compared Bybit's level of regulation with the top two global competitors and the top two competitors available in your country. Exchanges with Tier-1 regulation are generally considered the safest. However, Bybit's safety level is also influenced by other factors outlined below.
| Bybit | MEXC | OKX | |
|---|---|---|---|
Government-regulated |
Yes |
No |
Yes |
Tier-1 regulation |
Yes |
No |
No |
U.S regulation |
No |
No |
No |
FCA U.K |
No |
No |
No |
AUSTRAC in Australia |
No |
No |
No |
DFSA in UAE |
No |
No |
No |
AMF in France |
No |
No |
No |
Spain |
No |
No |
No |
Germany |
No |
No |
No |
Singapore |
No |
No |
No |
MFSA in Malta |
No |
No |
Yes |
Seychelles |
Yes |
No |
No |
Other countries |
Austria’s Financial Market Authority (FMA), Georgia, Kazakhstan |
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Open an account |
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Other Bybit Security Factors to Consider
| Bybit | MEXC | OKX | |
|---|---|---|---|
2FA |
Yes |
Yes |
Yes |
Verification (KYC) |
Yes |
Yes |
Yes |
Successful hacks |
Yes |
No |
No |
Cold wallet storage |
Yes |
Yes |
Yes |
Investor protection fund |
Yes |
No |
Yes |
Open an account |
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Short summary about the Bybit exchange
Bybit is a leading cryptocurrency exchange specializing in derivatives trading. Its proprietary trading platform is user-friendly but caters primarily to experienced traders who are comfortable with advanced financial instruments. Integration with TradingView provides seamless market analysis and trade execution. Bybit is regulated by the AFSA (Astana Financial Services Authority - Kazakhstan), holds a preliminary license from the VARA (Virtual Assets Regulatory Authority - Dubai) and secures MiCAR (Markets in Crypto-Assets Regulation) license from Austria’s Financial Market Authority (FMA).
Bybit allows highly leveraged trading of up to 100x with a clear and transparent fee structure. For those seeking alternative investment strategies, Bybit offers copy trading programs for both derivatives and spot markets, enabling users to automatically replicate the trades of successful investors. The exchange provides 24/7 customer support, a safe banking environment, and instant deposits/withdrawals. Additionally, Bybit offers a crypto debit card, allowing users to spend their digital assets on everyday purchases.
| 💰 Account currency: | Cryptocurrencies |
| 🚀 Minimum deposit: | From USD 1 |
| ⚖️ Leverage: | Up to 1:100 |
| 💱 Spread: | From USD 1 |
| 🔧 Instruments: | BTC/USD, ETH/USD, XRP/USD, EOS/USD and BTC/USDT, USDT pairs — ETH/USDT, LINK/USDT, LTC/USDT, XTZ/USDT |
| 💹 Margin Call / Stop Out: | No |
Bybit Pros and Cons
👍 Bybit Pros:
•It has a convenient, intuitive proprietary trading platform that is presented in the browser version, which eliminates conflicts with the operating system and braking when sending orders;
•Integration with TradingView allows users to simplify crypto market analysis and trading via a single platform;
•Combination of futures and perpetual contracts trading;
•There is an order book that allows you to assess the depth of the market and current trading volumes;
•It has a minimum entry threshold. The cost of a BTC/USD futures contract is USD 1;
•It is possible to open long and short positions with subsequent mutual recalculation;
•Opportunities for Muslim traders to participate in the crypto market.
👎 Bybit Cons:
•It has conditions for trading futures that are difficult for beginners, such as the formula for calculating the leverage, the terminology of the funding size and the premium index, funding rates, etc.;
•Lacks a mechanism to protect the interests of traders in the event of controversial issues;
Rules and Regulation
Licensing in the Philippines
In the Philippines, the Bangko Sentral ng Pilipinas (BSP), the country's central bank, oversees the regulation of cryptocurrencies. In 2017, the BSP issued Circular No. 944, which established guidelines for virtual currency exchanges (VCEs) operating in the Philippines. VCEs are required to register with the BSP and comply with Anti-Money Laundering/Combating the Financing of Terrorism (AML/CTF) regulations.
Investor protection in the Philippines
The BSP aims to protect cryptocurrency investors by ensuring that VCEs implement sufficient security measures, conduct client due diligence, and adhere to AML and CTF requirements. However, cryptocurrency investments still carry inherent risks, including price volatility, cybersecurity threats, and regulatory uncertainties. Investors are encouraged to conduct thorough research and exercise caution when investing in cryptocurrencies.
Taxation in the Philippines
The Philippine Bureau of Internal Revenue (BIR) issued the Revenue Memorandum Circular No. 2017-01, which clarified the taxation of income derived from crypto transactions. According to the circular, income from cryptocurrency transactions, including gains from trading and mining, is subject to taxation.
Profits are taxed as either capital gains or ordinary income, depending on the nature and frequency of the transactions. Additionally, individuals and businesses engaged in cryptocurrency-related activities are required to register with the BIR and keep records of their transactions for tax purposes. Failure to comply with tax obligations may result in penalties and legal consequences.
Do I recommend using Bybit in the Philippines?
The Bybit cryptocurrency exchange can certainly be recommended for traders from Philippines. The platform is well suited for trading cryptocurrencies. Despite that the company does not have a financial license, as this kind of activity is not subject to licensing in Philippines in general, the exchange has a good reputation. The company’s team has developed reliable account protection and closely monitors the security of the platform.
FAQ
Can I work with crypto exchanges considering that they don’t have a license in Philippines?
The fact that a crypto exchange does not have a license doesn’t mean that traders from Philippines will have problems while working with it. Cryptocurrency exchanges are not subject to licensing in many countries, while there are many exchanges with good reputation. Assess the available information about the exchange and check its reputation.
What security methods for account protection do crypto exchanges employ?
Cryptocurrency exchanges may offer various security methods. These include the two-factor authentication, first and foremost, and also such methods as a security question, additional passwords, etc.
Can an exchange that has had a security-related incident in the past be trusted?
You need to check whether such incidents were regular. If it was one episode several years ago, while the reputation of the exchange is good, you can work with such an exchange.
Should I work with an exchange if I have doubts about its reputation?
No. Always choose the cryptocurrency exchanges that have a good reputation.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).