Bybit Launches P2P Shield to Fight Fraud and Restore User Trust
Date: 2024-08-20 Author: Henry Casey Categories: BUSINESS
The introduction of Bybit P2P Shield is a major step forward in the blockchain industry, especially in the P2P transaction space, where users directly exchange assets. While this trading method offers flexibility and accessibility, it also suffers from frequent fraudulent incidents, which undermines user trust.
Bybit P2P Shield offers financial protection for users who have suffered from fraudulent activities on the platform. Users who have fallen victim to fraudsters will be able to receive compensation for their losses, which should help restore trust in the platform.
The reason for strengthening security measures was an incident in early 2023, when several users suffered significant losses due to a series of fraudulent P2P transactions. Fraudsters have been exploiting vulnerabilities in the transaction process by sending fake payment confirmations to trick merchants into giving them their crypto without actually paying.
P2P Shield was initially launched in a few regions, but Bybit plans to expand its reach globally to ensure that as many users as possible can take advantage of this protection. However, Bybit stresses that P2P Shield is not a substitute for vigilance. The exchange encourages users to continue to exercise caution and conduct due diligence when engaging in P2P trading.
The launch of Bybit P2P Shield coincides with a major growth milestone for the company. In recent years, Bybit has surpassed Coinbase to become the second-largest cryptocurrency trading volume. This has been possible thanks to the exchange’s rapid growth, competitive fees, and the introduction of Bitcoin spot ETFs in the US.
Bybit’s market share has grown from 8% to 16%, allowing it to overtake Coinbase, which only increased its share by 1%. Bybit’s success is largely due to the growth of Bitcoin (BTC) and Ethereum (ETH) trading volumes. Over the past year, Bybit’s share of these markets has grown from 17% to 53%.
Last week, Bybit also announced its expansion into Latin America, receiving approval to operate as a Virtual Asset Service Provider (VASP) and card operator in Argentina. This expansion allows Bybit to offer a variety of cryptocurrency services in a region where digital assets are becoming increasingly popular amid economic hardship.
Argentina, in particular, has seen an increase in cryptocurrency usage as citizens seek alternatives to traditional financial systems amid economic uncertainty. Becoming a VASP in Argentina is a strategic move for Bybit to strengthen its position in the Latin American market.
The introduction of P2P Shield, along with recent expansion efforts, is a testament to Bybit’s dual strategy of growth and global presence, without compromising on security.
However, despite its rapid expansion, Bybit is facing difficulties operating in some countries, such as France. Recently, the local French financial commission issued a warning to investors, advising them to refrain from trading on the Bybit platform, which eventually led to Bybit’s exit from the country.
