Bybit which was established in 2018 is the third-most visited cryptocurrency exchange. The headquarters of Bybit are in Dubai, United Arab Emirates. It claimed to have over 10 million registered users globally as of October 2021. It is now planning to develop a new debit card that will allow users to make payments and withdraw cash using their cryptocurrency holdings. The service will work with Bitcoin (BTC), Ethereum (ETH), Tether (USDT), USD Coin (USDC) and Ripple (XRP) balances on user accounts.
When used to pay for products and services, the Bybit Card will operate on the Mastercard network, allowing for fiat-based transactions by debiting cryptocurrency balances. The project will start with the release of a free virtual card for internet transactions, with actual debit cards following in April 2023. Payments will immediately convert the original cryptocurrency’ balances into euros or pounds, depending on the user’s place of residency.
Bybit users can keep on making USD deposits via Advcash Wallet or credit cards, but they must complete any outstanding US dollar wire withdrawals by March 10. They also have to complete the necessary KYC and AML procedures.
Ben Zhou, co-founder and CEO of Bybit said, “By launching Bybit Card, we are creating a full 360-degree journey for our users, offering next-level reliability, products, and opportunities. We are confident that these innovative payment solutions will improve people’s lives and are a step towards a brighter future for crypto and finance.”
ATM withdrawals and worldwide payments will be restricted to a user’s total cryptocurrency holdings in their Bybit account. Moorwand, a payments solutions firm located in London, is the supplier of the cards. The launch of Bybit’s virtual and real debit card offerings comes only days after the Dubai-based exchange announced the suspension of US dollar bank transactions. The stoppage of dollar deposits and withdrawals was attributed to service disruption’ by one of the company’s processing partners.
Mastercard has been looking into USDC payment possibilities through new partnerships, while Visa has hinted that consumers may be able to convert cryptocurrencies into cash on its network in 2023. Nevertheless, both Mastercard and Visa would postpone or cancel additional direct ties with the cryptocurrency and blockchain industries until market conditions improve and a clearer regulatory framework is established.
According to a Reuters article posted on Feb. 28, Visa and Mastercard have postponed the introduction of new collaborations with cryptocurrency businesses owing to high-profile bankruptcies in the industry, which has resulted in greater regulatory scrutiny. The delays are purportedly the result of an unclear regulatory crypto environment, which has resulted from the fall and bankruptcy of digital asset custodial companies such as Celsius, FTX, Three Arrows Capital, Voyager Digital, and others in the last year.
