Bybit Pay Sets Foot in Sri Lanka, Targeting South Asia’s Next Crypto Payment Frontier

Bybit Pay, the payments arm of the world’s second-largest crypto exchange, has officially set foot in Sri Lanka after launching operation in a country where tourism and crypto meets. But in order for Bybit's effort to pay off, it would need to navigate around the country's poor regulations framework, which could be this whole initiative's greatest achilles heels.

Bybit’s rollout includes 50 physical point-of-sale systems and 50 digital payment integrations according to a recent announcement. Partnering with local fintech provider Ceylon Cash via its CeyPay platform, Bybit Pay aims to bridge Sri Lankan merchants with the global crypto payments ecosystem, enabling businesses to transact in digital assets more easily than ever before.

Why Sri Lanka? Mobile Power and Tourism Growth

With mobile penetration exceeding 130% and a resurgent tourism sector, Sri Lanka offers a fertile testing ground for crypto-based payments. The country’s high smartphone adoption and growing demand for low-cost, instant transactions make it ideal for Bybit’s vision of borderless digital commerce.

“Sri Lanka’s combination of tech-forward consumers, robust tourism, and diverse merchant ecosystem creates perfect conditions for crypto payment adoption,” said Nazar Tymoshchuk, Regional Manager at Bybit. He added that Bybit Pay’s goal is to make payments “painless, efficient, and borderless” across emerging markets.

Bybit Pay’s system allows merchants — from small retailers to large chains — to enjoy ultra-fast settlement speeds, significnatly lower fees with the use of digital assets. The company also highlights its fraud protection and compliance frameworks, designed to strengthen merchant trust in crypto transactions.

Although cryptocurrency is not legal tender in Sri Lanka, and existing regulations restrict the use of debit or credit cards for crypto transactions under the Foreign Exchange Act, interest in digital payments continues to rise. Bybit’s entry underscores the increasing willingness of fintech and crypto firms to operate within regulatory gray zones while positioning themselves for future legalization or adoption.

Payments Industry Eyes Crypto Integration

Bybit’s expansion aligns with a broader global trend of traditional payment firms entering the crypto space. Earlier this year, Mesh integrated with Apple Pay, allowing merchants to accept crypto payments through mainstream mobile channels.

Stripe is also developing a USD-backed stablecoin for companies outside Western markets and recently acquired the payments network Bridge, designed to rival SWIFT-based transfers.

At the same time, crypto-native and tech leaders are pushing digital assets further into mainstream use. Jack Dorsey, co-founder of Twitter, has publicly encouraged messaging platforms like Signal to adopt Bitcoin payments, while Singapore’s Triple-A is preparing to integrate PayPal’s stablecoin into its supported token list. Even PayPal itself is now issuing its own stablecoin and offering yield incentives to attract users.

A Regional Catalyst for Crypto Commerce

Bybit Pay’s launch could prove pivotal for South Asia’s digital payment evolution. If successful, it could position Sri Lanka as a crypto commerce hub for the region — paving the way for broader adoption across neighboring markets like India, Bangladesh, and the Maldives.

While the lack of clear regulation presents challenges, Bybit’s calculated move into Sri Lanka demonstrates how crypto firms are adapting to local dynamics, using real-world integrations to build momentum where traditional banking systems remain inefficient.