Bybit, the world’s second-largest crypto exchange, obtains a provisional license from Dubai’s VARA, marking a key step in its global expansion strategy.
Bybit, the world’s second-largest cryptocurrency exchange by derivatives volume, has achieved a significant milestone in its expansion strategy by securing a provisional crypto license in Dubai. This license, granted by the Virtual Asset Regulatory Authority (VARA), allows Bybit to serve both retail and institutional crypto investors within the region, although it is currently non-operational.
This achievement comes two years after Bybit relocated its headquarters to Dubai, a city that has rapidly become a global hub for cryptocurrency and blockchain innovation. According to Helen Liu, Bybit’s Chief Operating Officer, the new license represents a pivotal moment for the company, aligning with Dubai’s vision of becoming a leading player in the blockchain space.
Liu highlighted Dubai’s strategic location, progressive regulatory environment, and innovation-driven policies as key factors that make the city an attractive destination for businesses and investors in the crypto sector. An increasing number of cryptocurrency companies are choosing to establish themselves in Dubai due to its welcoming stance on blockchain technology and digital assets.
In a broader regulatory shift, UAE authorities have announced that virtual asset service providers (VASPs) licensed in Dubai will be able to extend their services across the entire country. This development underscores the UAE’s commitment to fostering a regulatory framework that encourages the growth of the cryptocurrency industry.
Bybit is actively working toward obtaining a full operational license in Dubai. Although the provisional license allows the exchange to engage with local investors, it continues to collaborate with regulatory bodies to secure a complete operational permit. The exchange has also strengthened its relationship with the Dubai Multi Commodities Centre (DMCC), transitioning from a partner to an advisory role in the crypto ecosystem.
Bybit is second only to Binance in terms of 24-hour derivatives trading volume, with $15.8 billion traded as of mid-September. Dubai’s growing reputation as a crypto-friendly destination is further solidified by major players like Binance and Chainalysis setting up operations in the city. Regulatory advancements, such as recognizing cryptocurrency payments for employment contracts and the approval of stablecoin regulations by the UAE’s central bank, are making Dubai an increasingly attractive hub for Web3 and crypto firms.
As Dubai continues to enhance its regulatory environment, Bybit’s provisional license represents a key step toward full integration into the local crypto ecosystem, aligning with the city’s ambitions to become a global leader in the industry.
