Bybit Co-founder and CEO Ben Zhou Says the Golden Era of Global Exchange Expansion is Over
Ben Zhou, co-founder and CEO of Bybit, stated on the Wu Says podcast that the golden era of expansion for some major global exchanges has passed, and there will be greater opportunities for localized exchanges in the next three to five years.
He pointed out that local teams are more familiar with banking channels and infrastructure, and have stronger operational capabilities. While global platforms may have superior technology, local competitors can invest more resources into banking channels, services, and daily operations in their respective countries. Bybit may only have 10 to 20 employees in a single market, making it difficult to fully meet local demands.
Zhou also revealed that Bybit has compensated for previous losses from a North Korean hacker attack through subsequent operating income, but the security system should be designed under the assumption that theft will occur. The company's profits have declined year-on-year this year, and traditional asset trading businesses like stocks are not sufficient to offset the impact of the crypto business.
He stated that Bybit is still waiting for the right timing to enter the U.S. market, preferring to collaborate with local institutions that already have a retail user base rather than applying for licenses in each state individually. The core strategy for the next year will focus on regionalization and deep localization, with growth opportunities seen in markets such as the Philippines, Thailand, Indonesia, Brazil, and Argentina.
The company has obtained multiple licenses by 2026, including in the EU, Cayman Islands, Indonesia, South Africa, and El Salvador, and has received a VARA license in Dubai. Zhou emphasized that globalization must be achieved through localization, and products and marketing must be adjusted according to the market.
Market Mechanism: Localized exchanges gain user trust and capital inflow advantages through banking channels and compliance licenses, while global platforms face higher operational costs and regulatory friction; regional players with local teams benefit, while those relying solely on global expansion face pressure, leading to further industry consolidation.
Source: Public Information
ABAB AI Insight
Bybit was founded by Ben Zhou in 2018, initially expanding rapidly through derivatives and a no-KYC experience, but shifted to spot and compliance paths after layoffs during the bear market. After a massive hacker attack in 2025, the company compensated for losses through operating income and continued to obtain licenses in Turkey, Brazil, Indonesia, Thailand, the EU, and other regions, while advancing TradFi products and payment networks.
In terms of capital strategy, Zhou is shifting resources from rapid global customer acquisition to building regional teams and connecting with local banking channels. In the U.S. market, the choice is to collaborate with institutions that already have retail users rather than building licenses independently. This strategy outputs headquarters technology and liquidity to local partners while partially decentralizing operational costs and compliance responsibilities to address profit declines and slowing growth in crypto trading.
This differs from the early paths of Binance and OKX, which gained market share through indiscriminate global expansion, and is closer to the traditional brokerage model that requires local entities and banking relationships in various countries. The current exchange industry is transitioning from a "global liquidity platform" to a "licensed local operation + headquarters technology" model, where regional players with licenses and ground teams gain relative advantages.
This fundamentally represents a restructuring of the industry driven by regulatory changes: as countries require local entities, banking connections, and user protection, the marginal expansion costs of purely global platforms increase, making localization a necessary condition for gaining capital channels and user trust. The mechanism is that the cross-border nature of crypto trading encounters local regulations and barriers to fiat currency inflows and outflows, making "local banking relationships + licenses" more decisive for sustained capital inflow than "global technology," thus driving the industry from centralized expansion to regional decentralized competition.
ABAB News · Law of Cognition
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