Bybit secures temporary crypto license from Dubai regulator

Bybit, the world’s second-largest cryptocurrency exchange by derivatives volume, has obtained a provisional license in Dubai two years after establishing its headquarters in the city.
The centralized crypto exchange (CEX) has been granted a non-operational license from the Virtual Asset Regulatory Authority (VARA), as per an announcement shared with Cointelegraph. Helen Liu, Bybit’s Chief Operating Officer, stated that the new license is a significant step in the company’s global expansion strategy, fueled by Dubai’s ambition to emerge as a leading blockchain hub.
An increasing number of cryptocurrency companies are moving to Dubai, which is rapidly positioning itself as a global hub with crypto-friendly regulations. In a notable regulatory development, UAE regulators will allow Dubai-licensed virtual asset service providers (VASPs) to cater to the entire country, the Securities And Commodities Authority (SCA) and VARA declared on Sept. 9.
Despite the provisional license allowing Bybit to serve both retail and institutional investors in Dubai, the exchange is still working towards obtaining a full operational license in the region. Bybit relocated its headquarters to Dubai in 2022 and recently extended its partnership with the Dubai Multi Commodities Crypto Centre (DMCC) — transitioning from an ecosystem partner to a key advisory role.
According to a Bybit spokesperson, Bybit is the world’s second-largest crypto exchange by 24-hour derivatives volume, with over $15.8 billion worth of derivatives volume on Sept. 16, second only to Binance’s $38.5 billion, as per CoinMarketCap data. Dubai has been making considerable regulatory progress to attract more Web3 and crypto firms seeking crypto-friendly regimes. In a significant move, the Dubai Court of First Instance recognized salary payments in cryptocurrency as valid under employment contracts, as reported by Cointelegraph on Aug. 16.
In April, Binance, the world’s largest crypto exchange by volume, received a long-awaited virtual asset service provider license in Dubai after co-founder Changpeng Zhao gave up his voting power in the exchange’s local entity. Additionally, leading on-chain security firm Chainalysis also established regional headquarters in Dubai on May 8, after actively engaging with local government stakeholders to offer advice on best practices for regulatory development in the crypto industry.