Nils Silinevics
Partner · AML & Crypto Compliance · Former FIU Investigator
Bybit's Risk Management Review has triggered a Source of Funds verification on your account. Bybit is the world's second-largest derivatives exchange, and its compliance team handles SoF requests differently from Binance or Coinbase — particularly because Bybit's help center documentation is partially geo-restricted, making it harder for users to find clear guidance. We have resolved Bybit SoF cases across multiple jurisdictions and know what Bybit's compliance team requires versus what they say publicly. From €399, no upfront payment for the success fee option. Free initial assessment within 6 hours.
Bybit triggers Source of Funds verification through its KYC Verification and Risk Management Review system. Unlike Binance, which provides a relatively structured Identity Verification portal, Bybit's process is less transparent — and critically, Bybit's help center articles are partially geo-restricted, meaning depending on your location you may not even be able to access the official documentation explaining what Bybit requires from you. The notifications you will see include:
Bybit's compliance system uses automated transaction monitoring and risk scoring. The triggers are similar to other exchanges — large transaction volumes, rapid deposits followed by withdrawal attempts, transactions linked to flagged addresses, sanctioned jurisdiction connections, or behavioral patterns that match money laundering typologies. However, Bybit has specific sensitivities that other exchanges do not: it is a derivatives-focused platform, meaning SoF reviews can also involve questions about your trading strategy and how you fund your margin positions, not just the origin of deposited crypto.
Bybit operates under a complex multi-jurisdictional structure. Headquartered in Dubai (UAE) with operational offices in multiple countries, Bybit holds licenses from VARA (Virtual Assets Regulatory Authority) in Dubai, and operates in compliance with MiCA for European users. Bybit's Terms of Service — specifically the User Agreement section — grant the exchange broad rights to request Source of Funds documentation, suspend accounts, and close accounts for non-compliance.
The key regulatory frameworks that compel Bybit to request SoF: MiCA (for EU users), FATF Travel Rule obligations, UAE AML-CFT laws under VARA, and applicable national laws based on the user's country of residence. For users in jurisdictions where Bybit has exited or is operating without a local license — and Bybit has exited several markets including the UK, Canada, and parts of the EU — the regulatory situation is more complicated and SoF requests may be a precursor to forced account closure and mandatory withdrawal.
An important distinction: Bybit's jurisdiction (where it is registered) and its compliance obligations (which apply based on your country of residence) are different things. Some users confuse the two and assume that because Bybit is "based in Dubai," UAE law applies to their account. It does not — the applicable law is determined by your country of residence and the Bybit entity that serves you. We navigate these jurisdictional complexities when handling SoF cases.
Bybit's published documentation on SoF requirements is less detailed than Binance's, and the help center articles are not accessible from all geographic regions. Based on our case experience, here is what Bybit's compliance team actually requests:
Bybit does not publish official SLAs for Source of Funds reviews. This is a significant difference from Binance (which publishes a 10 business day target) and means you have no published benchmark to reference when following up. Based on our case experience:
Specific mistakes we see with Bybit Source of Funds cases — some unique to Bybit's derivatives-focused model:
We review your Bybit account history, the exact notification received, your trading activity (spot and derivatives), and identify the likely trigger — was it a P2P counterparty flag, a derivatives margin concern, an EDD threshold, a sanctions screening hit, or a jurisdictional issue? We also assess whether you have open positions that are at risk during the review.
We prepare the complete SoF package tailored to Bybit's specific requirements — including a full position statement if you have open derivatives, P2P transaction explanations if relevant, and Source of Wealth documentation for EDD-level reviews. We account for the fact that Bybit may request longer financial history than other exchanges.
We submit through Bybit's Identity Verification portal and, where necessary, escalate through Bybit's compliance team using the regulatory frameworks that apply to your specific situation — VARA for Dubai-registered operations, MiCA for EU users, or bilateral regulatory cooperation channels. Because Bybit does not publish an SLA, we use regulatory pressure to establish response timelines.
Bybit lifts the SoF review, restores withdrawal and trading functionality, and closes the compliance case. We verify all functions work — including derivatives trading if applicable — and advise on how to avoid triggering future reviews on a derivatives-focused platform.
Bybit does not publish an official SLA for Source of Funds reviews — unlike Binance, which publishes a 10 business day target. In practice, straightforward cases resolve in 3-10 business days. Complex cases involving derivatives, P2P counterparties, or cross-border activity take 2-6 weeks. The lack of a published SLA means there is no benchmark for escalation — we use regulatory frameworks (VARA, MiCA) to establish response timelines when Bybit's compliance team is unresponsive.
This is the biggest risk with Bybit SoF cases. If your account is frozen — including trading functions — your open futures positions cannot be closed or have margin added. If the market moves against you, they will be liquidated, and you will lose the collateral. Bybit's compliance team does not automatically pause liquidations during a SoF review. We treat these as emergency cases and prioritize getting at least position-closing functionality restored within 24-48 hours through regulatory escalation. If you have open positions and receive a SoF request, contact us immediately — do not wait.
Bybit geo-restricts parts of its help center, meaning the official documentation explaining Source of Funds requirements may not be visible from your location. You can use a VPN to read the articles — this is fine for reading documentation. However, do NOT use a VPN to access your Bybit account during a SoF review, as this will trigger additional security flags. We have access to the full help center documentation and can provide you with the requirements that are not visible in your region. Contact us and we will share the relevant documentation.
This is common on Bybit's P2P marketplace. If someone you traded with on Bybit P2P was flagged for fraud, money laundering, or sanctions, Bybit's compliance system will review all accounts that transacted with them — including yours. This does not mean you are suspected of wrongdoing, but you must still provide Source of Funds documentation for the P2P transactions in question. We prepare P2P-specific SoF packages: evidence of what you sold, what you received, why the transaction was legitimate, and your awareness (or lack thereof) of the counterparty's activities.
Yes. Bybit's Terms of Service allow account closure for non-compliance with verification requests. Unlike Binance, which typically gives a 14-day deadline, Bybit's deadline is often unspecified — it varies by case. If you do not respond, Bybit will eventually restrict the account to deposit-only, and then proceed to closure. After closure, recovery requires a formal appeal and can take months. Always respond to a SoF request immediately, even if you do not have all the documents — we can request an extension.
Often yes — Bybit may allow deposits while blocking withdrawals. But this is a trap. Any new deposits during a SoF review are also frozen and become part of the review scope. You are making the problem bigger, not solving it. Do not deposit any additional funds to Bybit while your account is under a Source of Funds review. Wait until the review is fully resolved and all functions are restored.
If Bybit has exited your country (as it has from the UK, Canada, and parts of the EU), your SoF case may be a precursor to forced account closure and mandatory withdrawal. Bybit's standard process in market exits is: first restrict new registrations and features, then request SoF/KYC from existing users, then close accounts and require withdrawal to an external wallet. This is a different situation from a standard SoF review — the goal is not to verify your funds but to offboard you from the platform. We handle these cases differently, focusing on ensuring you can withdraw your funds before the account is closed.
Bybit accepts: government-issued photo ID (passport preferred), live selfie with liveness check, proof of address (utility bill or bank statement from the last 3 months), and Source of Funds evidence. For employment income: payslips plus matching bank statements. For savings: 6-12 months of bank statements (Bybit tends to request longer history than Binance). For crypto from another exchange: withdrawal history from that exchange. For derivatives traders: documentation of how margin positions are funded. For EDD-level reviews: Source of Wealth documentation including tax returns and business financials. All documents must be in English or your registered country's language, in PDF format, with names matching your Bybit account exactly.
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Tell us what source-of-funds documentation Bybit requested and your situation. We respond within 6 hours.