Nikolas Sargeant
Bybit, the second-largest crypto exchange globally by derivatives trading volume, has earned a provisional license to operate in Dubai. This milestone comes two years after Bybit established its headquarters in the city, positioning itself within a rapidly growing blockchain ecosystem.
The Virtual Asset Regulatory Authority (VARA) has granted Bybit a non-operational license, allowing the exchange to begin preparing to serve retail and institutional clients in Dubai’s promising crypto market.
Helen Liu, Bybit’s Chief Operating Officer, highlighted the importance of this license as part of Bybit's global growth strategy. She emphasized Dubai’s progressive policies and its strategic role as an emerging blockchain hub:
"Dubai offers unmatched opportunities for businesses and investors within the cryptocurrency space, driven by its forward-thinking regulatory environment."
An increasing number of crypto businesses have relocated to Dubai as it swiftly transforms into a global crypto hub, thanks to its crypto-friendly regulatory framework.
In a significant regulatory shift, the UAE will now allow virtual asset service providers (VASPs) with Dubai licenses to operate across the entire country, according to the UAE's Securities and Commodities Authority (SCA) and VARA’s announcement on September 9.
Bybit Pursuing Full Operational License in Dubai
Although Bybit's provisional license enables it to engage both retail and institutional investors, the exchange is actively working toward securing a full operational license. This would further cement its presence in Dubai, where the company moved its headquarters in 2022.
Bybit has also renewed its partnership with the Dubai Multi Commodities Centre (DMCC), transitioning from an ecosystem partner to a key advisor. A company spokesperson noted:
"Securing a full license in Dubai would be a crucial milestone as we continue to expand our global reach and contribute to the city's growing economy."
As of September 16, Bybit handled over $15.8 billion in 24-hour derivatives trading volume, making it the second-largest crypto exchange behind Binance, which reported $38.5 billion in volume, according to CoinMarketCap.
Dubai: A Rising Global Crypto Hub
Dubai has emerged as a key player in attracting Web3 and crypto firms seeking jurisdictions with crypto-friendly regulations. This momentum has been fueled by various regulatory developments aimed at fostering innovation within the sector.
In a significant legal move, the Dubai Court of First Instance recently recognized the legitimacy of salary payments made in cryptocurrency under employment contracts. Meanwhile, in June, the UAE Central Bank approved a new framework for licensing and monitoring stablecoins.
April also saw Binance, the largest global crypto exchange, secure a long-anticipated virtual asset service provider license in Dubai. Other major firms, like Chainalysis, have followed suit, establishing regional offices and engaging with local government stakeholders to provide guidance on regulatory best practices for the burgeoning industry.
