Bybit, a prominent cryptocurrency exchange, has achieved a key milestone in its global expansion by receiving provisional approval for a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA). This marks the first step toward obtaining a full operating license in the region, which would strengthen Bybit’s foothold in one of the world’s most promising crypto markets.
The announcement, made on Sept. 16, followed a comprehensive review process by VARA to ensure Bybit met the necessary compliance standards. With this approval, the exchange moves closer to fully operating within Dubai’s evolving cryptocurrency landscape.
Bybit’s Chief Operating Officer, Helen Liu, expressed enthusiasm about the company’s position in Dubai, citing the city’s “strategic location, progressive policies, and innovation-driven environment” as key factors in the decision to expand there. According to Liu, Dubai’s “robust regulatory framework” and commitment to becoming a blockchain hub provide the perfect environment for advancing digital currencies.
Bybit first established its international headquarters in Dubai in 2022 and has since taken on various initiatives to support the region’s web3 and crypto sectors. The company has also renewed its partnership with the Dubai Multi Commodities Centre (DMCC), a key player in promoting the development of the web3 ecosystem. Bybit’s role as an advisor within the DMCC highlights its ongoing commitment to fostering the growth of blockchain technology in Dubai.
This provisional approval is just one aspect of Bybit’s global expansion. Recently, the exchange received formal consent from the Astana Financial Services Authority, which could pave the way for a full license to operate in Kazakhstan. Before this, Bybit secured a VASP license in Argentina from the General Inspectorate of Justice, expanding its presence in Latin America.
Dubai’s rapid development as a global crypto leader has made it an attractive destination for companies like Bybit. The city’s proactive approach to regulation and innovation is helping to attract a growing number of crypto businesses. The Sept. 9 agreement between Dubai’s Securities and Commodities Authority (SCA) and VARA is a significant move, allowing crypto exchanges licensed in Dubai to offer their services across the entire UAE. This provides a competitive edge for exchanges, granting them access to a wider market.
In addition to these regulatory developments, Dubai’s judicial system is also recognizing the legitimacy of cryptocurrency in various sectors. A recent ruling by the Dubai Court of First Instance acknowledged that cryptocurrency could be used as a valid form of salary payment. In a case involving unpaid wages in EcoWatt tokens, the court mandated that the employer fulfill the payment in tokens, further validating the use of crypto in legal contracts.
Bybit’s provisional approval in Dubai represents more than just a regulatory victory it’s a key move in the company’s broader plan to establish itself as a leading player in global cryptocurrency markets. The exchange’s focus on compliance and innovation aligns perfectly with Dubai’s vision of becoming a blockchain capital.
As Bybit continues to work with VARA to secure a full license, it remains well-positioned to play a significant role in shaping Dubai’s future as a major blockchain and cryptocurrency hub.
