Is Bybit Safe? A Rundown of Bybit’s Security Features

Bybit is one of the most popular trading platforms, known for low maker/taker fees and contracts suitable for different trading styles. But is Bybit safe? The simple answer is yes, though it's a "yes" the platform had to earn, especially after surviving the largest crypto hack in history in February 2025 without losing a dollar of user funds.

To make sure we have a 360° answer to the question, I checked the actual audit reports, the live reserves dashboard, and compared Bybit against competitors like Binance and Kraken.

Trusting a platform’s marketing claims blindly can cost you your funds, so I made sure to verify everything myself instead for you. Here's everything I found.

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Is Bybit Safe? Regulatory Status & Licensing Checked

Bybit legally operates in over 160 countries across the Asia Pacific, Europe, the Middle East, Africa, and South America, and its regulatory footprint has expanded over the past two years. Is Bybit safe? Regulatory speaking, yes.

Here are Bybit's active licenses across countries:

Table: Bybit's licenses or registration across countries

Is Bybit legit in the UAE? Yes, Bybit now holds two approvals that cover different scopes. First, it has a provisional VARA license for institutional services in Dubai, run through a separate entity (Bybit MENA).

Then, in October 2025, Bybit became the first crypto exchange to receive a full Virtual Asset Platform Operator License from the UAE's Securities and Commodities Authority (SCA). It’s a federal license covering trading, brokerage, custody, and fiat conversion across the entire UAE mainland, broader in scope than VARA.

In the European Union, Bybit has secured its MiCAR license through Austria's Financial Market Authority, received on May 28, 2025. This makes Bybit one of the first global exchanges fully MiCAR-licensed, with passporting rights across all 29 EEA countries and a new European headquarters in Vienna.

Bybit also holds a Virtual Asset Service Provider (VASP) registration from the National Bank of Georgia, obtained in November 2024, letting it offer crypto services within the country.

Its compliance track record includes removal from France's AMF blacklist in February 2025, after more than two years of remediation. That said, this needs a caveat, as some reports indicate Bybit paused its own operations in France around January 2025 due to regulatory scrutiny, and it's not clear whether service has resumed since.

Separately, Bybit returned to India in stages between February and September 2025, after registering with the Financial Intelligence Unit (FIU-IND) and paying a fine over past compliance violations.

📚 Read More: Bybit Restricted Countries

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Bybit's Security Measures

Before answering whether Bybit is safe, it helps to separate two different questions: what Bybit itself does to protect the platform, and what you have to actively set up to protect your own account. Both matter, but they're not the same thing. Here's a breakdown of both.

Security Infrastructure (What Bybit Controls)

These are the safety measures built into the platform that you benefit from automatically, without having to set anything up.

Bybit keeps the majority of user funds in cold storage. Since hackers can't reach a wallet that isn't connected to the internet, this is the biggest protection against large-scale theft. Moreover, moving money out of these wallets requires multiple people to approve the transaction (called "multisig"). So, no single employee can move user funds alone.

Attackers didn't break into Bybit's servers, but they tricked the interface that Bybit's approvers used to sign off on a transfer. As a result, the fraudulent transaction looked legitimate. Yes, multisig protects against a rogue insider, but it isn't automatically immune to a well-executed attack on the tools around it.

📚 Read More: Hot VS Cold Wallets

Trusted Execution Environment (TEE) refers to the protected, isolated part of a computer's processor^[1] where sensitive operations happen. Even if malware infects the main system, it can't peek into this protected area.

Threshold Signature Scheme (TSS) works differently. Instead of one private key sitting in one place, the key is split across multiple parties. A set number of them have to combine their pieces to approve a transaction. The lack of a single point of failure means no single point of attack.

Bybit's systems watch account activity continuously, including login attempts, trading patterns, and withdrawal requests, looking for anything unusual. If something looks off (e.g., a login from a new country followed immediately by a large withdrawal), the system can flag it and trigger extra checks before the transaction goes through.

This is Bybit's way of proving it actually has the crypto it says it holds, rather than just asking users to trust it. An independent auditor (Hacken) checks two numbers: how much Bybit owes users in total, and how much Bybit actually holds in its wallets. If reserves match or exceed what's owed, that means Bybit could cover every withdrawal if all users asked for their funds back at once. That's the "100%+" figure you'll see cited.

At the time of writing, Bybit's audited reserve ratios sit above 100% across all in-scope assets, with exact per-asset ratios published on Bybit's live reserves dashboard, ranging from around 102% to over 130% depending on the coin.

For example, APEX sits at 134% (65,185,611 in user assets vs. 87,370,363 held in Bybit's wallets), while AGI sits closer to the floor at 102% (89,336,243 owed vs. 91,595,438 held). The dashboard shows this same user-assets-vs-wallet-assets breakdown for every asset, so anyone can check the math themselves.

Bybit pays outside security researchers to find and report vulnerabilities before criminals do, through HackerOne. It's a common practice among major exchanges. This program means more eyes are constantly testing the platform for weaknesses, on top of internal security teams.

Account-Level Security (What You Control)

These are the settings you configure yourself. Bybit groups most of them under a feature called Bybit Protect, its umbrella security framework covering everyday logins, sensitive fund actions, and specific risk scenarios.

But the tools only help if you actually turn them on; Bybit provides them, and the responsibility to enable them is yours. Let's see what's inside this framework.

2FA requires a verification code alongside your password^[2], adding another layer of protection for your account. On Bybit, it's a time-based code from Google Authenticator or a similar app.

You can also apply it separately to withdrawals, password resets, and security setting changes, so even someone with your password can't casually change your account behind the scenes.

📚 Read More: What Is Two-Factor Authentication?

An anti-phishing code refers to a short string of letters, numbers, and symbols you set yourself that Bybit stamps onto every official email and SMS it sends you. If a message claiming to be from Bybit is missing your code, or has the wrong one, that's your signal to ignore it and never click any links inside. This helps counter one of the most common attack methods in crypto: fake "urgent" emails designed to steal your login details.

As the name suggests, this security measure restricts your withdrawals to a list of wallet addresses you've pre-approved. So, anything not on the list gets blocked automatically, even if someone else has your password and 2FA codes.

Adding a new address to the list isn't instant either: Bybit applies a lock period (currently 24 hours) before a newly added address can actually receive funds, so you have some time to notice and cancel if you didn't add it yourself.

Bybit lets you designate a primary trusted device, which can then be required to approve sensitive actions, such as withdrawals, initiated from any other device or browser. If your primary device is ever lost or compromised, you can remove it, and any future login attempt from an unrecognized device triggers an automatic alert.

Bybit sends real-time alerts by email (and optionally SMS) for important account events: new logins, withdrawal requests, and changes to your security settings. They can be your early-warning system, since a notification about a login or withdrawal you didn't initiate is often the first sign something's wrong.

The catch is they only work if you actually read them, so pairing this with a secure, monitored inbox matters just as much as enabling the feature itself.

Does Bybit Require KYC?

Yes, Bybit requires a Know-Your-Customer (KYC) verification. Like any reputable centralized exchange, Bybit requires all users to pass identity verification before they can access the platform's full range of features, including buying and earning crypto, promotions, and special events.

Why does Bybit require KYC? The goal is to assess your risk profile and prevent the platform from being used for money laundering or financing illegal activity. Bybit also has the right to share a suspicious user's information with relevant authorities if there's any indication of criminal activity.

If you ever lose access to your account, recovering a KYC-verified account is much easier, since Bybit already has the information needed to confirm you're the rightful owner.

Completing Bybit KYC also unlocks a lot of value. Level 1 verification or higher gives you access to fiat deposits, credit card purchases, and P2P trading. Verified users are also eligible for advanced trading tools and products, like trading bots and derivatives, as well as Bybit's Earn products. Bybit's individual verification is split into three levels, each unlocking different features and requiring different documents.

Table: Bybit KYC requirements

Verifying a business account follows the same underlying logic as individual KYC, proving who you are to reduce fraud risk, but it's a separate process. It verifies the company and its individual officers or owners, and must be submitted through Bybit's dedicated Business KYC Portal.

To verify a corporate account, you'll need to provide:

• Incorporation certificate
• Articles, constitution, or memorandum of association
• Latest register of members and directors
• Name and nationality of the Ultimate Beneficial Owner (UBO); anyone owning 25% or more of the company, who will also need to confirm this via a verification link sent to their email
• Passports or IDs and proof of address for all directors who aren't the UBO
• Passport or ID and proof of residency for the account operator, if they are the UBO
• The company's organizational chart

Business KYC typically takes 3-5 business days, sometimes longer depending on the complexity of the review. As with individual accounts, proof of identity and address must be valid within the last 3 months.

Bybit Wallet: Is It Safe?

Bybit offers three wallet options, each catering to different user preferences and security needs:

None of the three wallets requires identity verification to set up, but you need to make a Bybit account for Keyless Wallet and Cloud Wallet.

So, is Bybit Wallet safe? Yes, as long as you take responsibility for protecting your own keys or seed phrase, since two of the three options put custody largely or entirely in your hands. However, Cloud Wallet is considered less secure since users don't control their private keys.

📚 Read More: Bybit Wallet Review

Bybit Card: Is It Safe?

The Bybit Card is a separate product from the exchange. It's a crypto-linked debit card issued through Mastercard, so it comes with its own layer of protection on top of Bybit's account security. Mastercard's zero-liability policy applies, meaning you're not responsible for payments you didn't authorize yourself.

The card also uses EMV 3DS technology, an industry-standard verification layer used for online and contactless payments to confirm it's really you making the purchase. On top of that, the issuing entity follows UK and EU regulations, including MiCAR and EMD2 (Europe's electronic money rules), so the card sits under a different regulatory framework than crypto trading itself.

If your card is ever lost or stolen, you can freeze it instantly from the app, although unfreezing it requires additional security verification. Since the card draws directly from your Bybit Funding Account balance (there's no separate card wallet), your card's safety is still ultimately tied to your account-level security.

Bybit gatekeeps this product more tightly than the exchange as a whole. Therefore, setting up 2FA, a withdrawal whitelist, and device management is important to protect your card spending.

📚 Read More: Bybit Card Review

How to Protect Your Bybit Account

Bybit gives you the tools, but you're the one who has to use them. Below are two of the most important things you can do to lock down your account: setting up 2FA and completing KYC verification.

How to Activate 2FA on Bybit

Activating the 2FA feature for your Bybit account is easy. Here’s what you need to do:

Your account now has 2FA activated, so every time you log in, you’ll need to enter the code in your Google Authenticator App to proceed.

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How to Complete KYC Verification on Bybit

Now, let's take a look at how to complete the verification process on Bybit. For the most part, the instructions are pretty straightforward on both the Bybit app and desktop. After you finish preparing all the necessary information, continue with the following:

If you want to change or update your KYC information after the verification is done, you can do so as long as your account fulfills the following conditions:

• Individual KYC-verified;
• Not a sub-account;
• Not currently restricted or suspended;
• Not in the process of updating or transferring its KYC status;
• Its KYC has not been updated within the last six months (180 days).

Keep in mind that you have to use the same name for both the first and second KYC processes.

Has Bybit Ever Been Hacked?

Yes, and any answer to "Is Bybit safe?" isn’t complete without mentioning it. On February 21, 2025, Bybit suffered the largest crypto heist in history, as attackers linked to North Korea's Lazarus Group stole about $1.5 billion in ETH from one of the exchange's cold wallets.

At that time, Bybit was moving funds from a cold wallet to a warm wallet using Safe{Wallet}, a third-party multisig platform. Hackers had compromised a developer's machine on Safe's side and planted malicious code into the transaction interface.

When Bybit's approvers signed off on what looked like a routine transfer, the tampered interface showed them a legitimate-looking transaction while quietly rerouting the funds. The FBI later confirmed the Lazarus Group (also tracked as TraderTraitor) as the culprit, tying it to North Korea's broader pattern of state-sponsored crypto theft.

That said, what matters for a safety verdict is what happened next:

In the month following the hack, the exchange completed nine security audits and rolled out 50 new security measures. On the wallet side, it tightened its cold wallet protocols, introduced stricter operational procedures, and adopted multiparty computation (MPC) to strengthen wallet security further.

Bybit also partnered directly with Safe (the multisig provider whose interface was exploited) to overhaul the signing system and add stricter manual checks for large transfers.

So is Bybit legit even after experiencing this hack? Yes, Bybit's own infrastructure held up, although a third-party dependency it trusted didn't. And when that dependency failed, Bybit still footed the bill.

Bybit’s User Experience and Feedback

Bybit's ratings tell two different stories depending on where you look. On the App Store, it holds a 4.7 out of 5 from around 47,000 ratings, and Google Play shows something similar with 4.56 out of 5 from over 1.3 million reviews.

However, many App Store reviews contain referral codes and near-identical phrasing, a pattern that usually points to incentivized reviews rather than fully organic feedback, so I lean on the much larger Google Play sample as the more reliable mobile signal.

Complaints on Google Play are mostly about unexplained holds, delayed transactions, and promised rewards that didn't pay out. Meanwhile, the genuine positive reviews mixed in: "Been on this app for about 2 years and no complaints", and "Reputable Crypto Exchange".

Trustpilot paints a rougher picture, sitting closer to 3.2-3.4 out of 5. The most common complaints there and on Reddit's r/Bybit are about account friction, including withdrawals frozen for weeks even after full KYC, template support replies with no real escalation path, and P2P disputes that users feel get resolved slowly.

Several users credited Bybit for covering the $1.5B shortfall out of pocket rather than passing losses onto customers, and for keeping withdrawals fully open the entire time, especially when comparing to how past exchange collapses (like FTX) were handled.

For a lot of traders, that response after the hack was the main aspect that kept them on the platform.

How Does Bybit Compare to Other Exchanges in Terms of Safety?

Every major exchange leans on the same basic building blocks (e.g., cold storage, 2FA, audits), but the specific technology, structure, and track record behind those basics vary more than people realize.

For example, Kraken holds a Wyoming Special Purpose Depository Institution (SPDI) charter, which is a banking license and none of the other exchanges here have. On the incident side, Kraken has never lost customer funds to an external hack in over 13 years, a track record Bybit can't match.

It isn't spotless, though, because, in 2025-2026, bribed support staff accessed internal systems in two separate incidents, exposing data from around 2,000 accounts. No funds were taken or breached, but this incident is worth noting if you value privacy the most.

📚 Read More: Is Kraken Safe?

Coinbase, on the other hand, is being publicly traded on Nasdaq, which subjects it to public-company disclosure requirements most exchanges never face. It also holds SOC 1 and SOC 2 Type II certifications and insures the roughly 2% of funds it keeps in hot wallets.

Gemini also goes furthest on regulated custody, with cold storage geographically distributed across multiple sites to avoid a single point of failure, and keys protected via multi-party technology plus dedicated hardware security modules.

Additionally, the platform is a New York-chartered trust company under NYDFS, holds SOC 1/2 Type II plus ISO 27001 certifications, and backs USD balances with FDIC pass-through insurance.

Binance also offers something Bybit doesn't: the Secure Asset Fund for Users (SAFU), a self-funded reserve built from a slice of trading fees since 2018, now worth roughly $1 billion and verifiable on-chain. It has a real payout history, having fully covered a $40 million hack in 2019.

📚 Read More: Is Binance Safe?

Where does that leave Bybit? Its core technology: multisig cold wallets, TSS/MPC key-splitting, TEE-protected signing, just without a third-party insurance layer or a banking-grade charter like Kraken's. Its clearest edge is transparency with monthly Proof of Reserves with a self-checkable Merkle proof.

Table: The comparison of security features in major exchanges

Weighed together, Bybit's strongest card is its response to its own incident, covering the full $1.5 billion shortfall within 72 hours, keeping withdrawals open throughout, and publishing complete forensic reports.

What it can't undo is scale: Bybit is the only one of these four carrying a nine-figure-plus loss that actually reached its own cold wallets.

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Conclusions: Is Bybit Safe?

Yes, but it's a "yes" Bybit had to earn. It holds licenses (MiCAR in the EU, a full UAE federal license, VASP status in Georgia), backs its custody claims with monthly, self-verifiable Proof of Reserves, and layers multisig cold storage. It also survived the largest hack in crypto history without losing a dollar of user funds.

Where it falls short is the everyday experience around it. User feedback points to recurring friction with withdrawal holds and slow support, even for verified accounts. No matter how well Bybit responded, it's still a major exchange carrying a nine-figure-plus loss that actually reached its cold wallets.

So the answer is yes, Bybit is safe, based on everything independently verifiable, but go in with eyes open, and treat any exchange as a place to trade, not to store your life savings long-term.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. Liu S., Guan N., Guo Z.; Yi W.: 'MiniTEE—A Lightweight TrustZone-Assisted TEE for Real-Time Systems';

2. Reese K., Smith T., Dutson J., Armknecht J., Cameron J., Seamons K.: 'A Usability Study of Five Two-Factor Authentication Methods'.