Bybit Secures Key Regulatory Approval in UAE In the midst of Global Expansion

Bybit has made great progress in obtaining a UAE cryptocurrency exchange license. The company declared on February 28 that the Securities & Commodities Authority (SCA) of the United Arab Emirates has granted it in-principle license to function as a Virtual Asset Platform Operator. This approval, dated February 18, brings Bybit one step closer to providing digital asset services to regional institutional and retail clients.

Despite the exchange’s recent security compromise, in which hackers took advantage of its multisig cold wallet and caused a $1.5 billion loss, this regulatory milestone has been reached. Dubai’s Virtual Assets Regulatory Authority (VARA) responded to the incident by telling Khaleej Times that it is still being closely monitored till things settle down.

UAE Strengthens Its Crypto Leadership

Bybit’s regulatory progress aligns with the UAE’s growing reputation as a global cryptocurrency hub. The country continues to attract major crypto firms by fostering a balanced regulatory framework that promotes innovation while ensuring investor protection.

This approval follows Bybit’s ongoing efforts to secure regulatory licenses in other key markets, including India, Georgia, Kazakhstan, and Turkey. Meanwhile, the UAE has been actively approving digital asset operations. On February 24, the Dubai Financial Services Authority (DFSA) officially recognized Circle’s stablecoins, USDC and EURC, under its new token regime. Similarly, in April 2024, Crypto.com’s Dubai-based entity, CRO DAX Middle East FZE, secured full operational approval from VARA, allowing it to offer services such as spot trading and staking brokerage.

Looking ahead, VARA is introducing new transparency measures. The regulator plans to require crypto businesses to disclose major token holders, preventing market manipulation by identifying whether assets are concentrated among a few entities or venture capital firms. Additionally, new risk disclosure rules are under consideration to help investors better understand the assets they purchase.

Bybit’s latest approval signals continued expansion in regulated markets, reinforcing the UAE’s position as a leading crypto-friendly jurisdiction.