- •Bybit secures a Virtual Asset Platform Operator License from UAE’s Securities and Commodities Authority, enabling it to offer its products across the region.
- •The authorization follows similar licensing approvals in Austria and India, showcasing Bybit’s expanding footprint and adherence to regional compliance standards.
- •UAE’s collaborative approach between VARA and SCA aims to unify crypto regulation, promoting licensing reciprocity among authorities.
- •Dubai remains an attractive destination for global crypto firms, supported by strategic regulation initiatives like VARA’s licensing framework.
- •The region’s proactive stance on crypto regulation continues to fuel innovation, despite past security incidents and regulatory challenges.
Expansion in the Middle East
Cryptocurrency exchange Bybit has successfully obtained a Virtual Asset Platform Operator License from the Securities and Commodities Authority (SCA) of the United Arab Emirates. This license allows Bybit to offer its comprehensive suite of global crypto products and services within the UAE. The approval marks a significant step in the company’s regional expansion and confidence in the UAE’s commitment to robust crypto regulation.
Earlier, in May, Austrian authorities granted Bybit licensing approval, further easing its operations within the European Union. The exchange also completed registration in India in February after navigating compliance hurdles and settling a $1-million fine for regulatory violations. These developments illustrate Bybit’s strategic move toward gaining regulatory clearance in different jurisdictions, bolstering its credibility as a safe participant in the global crypto markets.
“Receiving the full Virtual Asset Platform Operator License from the SCA demonstrates Bybit’s unwavering commitment to building trust through compliance and transparency,” said CEO Ben Zhou. “The UAE’s emergence as a leader in digital asset regulation underscores the strength of our security and governance standards,” he added.
While crypto companies often rely on piecemeal license arrangements across various UAE authorities, recent strategic partnerships aim to streamline this process. In August, Dubai’s Virtual Assets Regulatory Authority (VARA) and the SCA announced a partnership to unify crypto regulations. This includes licensing reciprocity, enabling firms licensed by one authority to operate more seamlessly across jurisdictions.
In September, VARA granted Bybit a non-operational license in Dubai, with the company now pursuing full approval to expand its regional footprint. Such regulatory clarity bolsters Dubai and the UAE’s reputation as a global crypto hub, attracting prominent firms and investors seeking transparency and compliance.
UAE: A Rising Crypto Powerhouse
Dubai’s conducive regulatory environment and investor-friendly policies continue to draw significant names from the crypto industry. The region has become a magnet for industry giants seeking to establish a foothold in the Middle East, leveraging the region’s strategic position and forward-looking policies.
Despite setbacks like the massive February hack on Bybit by North Korean-affiliated Lazarus Group, the UAE’s proactive regulatory approach aims to strengthen security measures and restore confidence. With ongoing efforts to develop innovative frameworks, including initiatives like the UAE Golden Visa — which potentially offers residency pathways for crypto investors — the region appears poised to remain at the forefront of the global crypto landscape.