Bybit, the cryptocurrency trading platform, has had its client access suspended by Hidden Road, a prime brokerage firm backed by Citadel Securities. The suspension is due to disagreements over know-your-customer (KYC) and anti-money laundering (AML) requirements. Hidden Road informed its clients of the decision a few weeks ago, but the exact details of the disagreement are still unknown. In response, Bybit has initiated a comprehensive compliance review of its prime brokerage business. This comes in light of increased scrutiny on crypto exchanges by regulators, following Binance’s settlement with the US Department of Justice last year. Bybit has recently faced rumors of a potential hack or insolvency, but CEO Ben Zhou has reassured users that the platform is financially stable and secure. Bybit has also encountered regulatory challenges in Europe, particularly in France where it has been blacklisted for operating without proper authorization.
