The watchdog isn't banning the exchanges.
The platform has opened with four trading pairs. More will follow shortly.
Users will have to undergo facial recognition and share identity documents make withdrawals.
The action against Bybit follows a similar one the OSC took against KuCoin trading platforms earlier this month.
The global derivatives giant improves from fifth place earlier this week. Binance ranks first.
Bybit said it will no longer be providing its services following the Financial Conduct Authority’s (FCA) ban on crypto derivatives.
The Singapore exchange is adding tether (USDT) perpetual contracts to simplify account management and allow two-way trades.
Crypto perpetuals exchange Blade will be introducing zero-fee trading next month in a bid to gain market share from rivals.