Bybit has been granted an in-principle approval from the Securities & Commodities Authority of the UAE and is on track to receive the fully operational license.
On Feb. 28, Bybit announced that it had received an in-principle approval from the SCA of the UAE to establish itself as a Virtual Asset Platform Operator in the country, dated Feb. 18. This milestone moves Bybit closer to being fully licensed to offer its digital asset services to both individual and institutional clients in the UAE.
The in-principle approval comes in spite of Bybit’s recent hack of its multisig cold wallet, resulting in a loss of $1.5 billion. In a statement to Khaleej Times on Saturday, VARA said that the incident is “a highly evolving matter that we will continue to closely track until it stabilises”.
Bybit’s licensing in UAE follows its existing regulatory approvals in the Middle East. The exchange is also actively securing regulatory approvals worldwide, expanding its presence in key markets such as India, Georgia, Kazakhstan, and Turkey.
The UAE has solidified its position as a global hub for crypto and blockchain innovation, driven by progressive regulatory frameworks that balance growth with investor protection.
Bybit’s in-principle licensing is just one of a series of approvals for crypto platforms and digital assets to operate in the UAE. On Feb. 24, the Dubai Financial Services Authority approved Circle’s USD Coin (USDC) and EURC as the first officially recognized stablecoins under Dubai’s new token regime. Earlier, in April 2024, Crypto.com’s Dubai-based entity, CRO DAX Middle East FZE, received full operational approval from the Dubai VARA, licensing the company to offer services such as spot trading and staking brokerage to both institutional and retail clients within the UAE.
Additionally, VARA is set to introduce new rules requiring crypto businesses within the UAE to disclose the identities of crypto whales, aiming to protect investors by revealing whether a cryptocurrency is highly concentrated in the hands of a few entities, whether the project’s team or VCs. VARA is also considering new risk disclosure requirements to ensure investors fully understand the assets they’re purchasing.
