Bybit, the second-largest cryptocurrency exchange by 24-hour derivatives volume, has announced that it has obtained the provisional crypto license from Dubai’s regulator, the Virtual Assets Regulatory Authority (VARA).
This non-operational license will be in effect two years after the crypto exchange sets up its global headquarters in Dubai.
With this license, Bybit would be able to offer its crypto services to retail, qualified investors, and institutional users in the city.
Bybit Secures Provisional Approval From VARA
Bybit crypto exchange has received a provisional license from Dubai’s Virtual Assets Regulatory Authority (VARA). This license permits Bybit to function as a Virtual Asset Service Provider (VASP) in the city.
While this license is a non-operational approval, it marks significant progress for Bybit toward securing full operational approval in the Emirate of Dubai. This provisional license, however, enables Bybit to serve both retail and institutional crypto investors in Dubai.
The chief operating officer for Bybit, Helen Liu, stated that the new provisional license is a “significant milestone in Bybit’s global expansion strategy.” She added that Dubai’s move towards becoming a leading crypto hub possibly triggered the approval.
Bybit, with more than $15.8B worth of derivatives volume on September 16, second to Binance’s $38.5B, moved its global headquarters to Dubai in 2022.
Bybit Reinforcing Its Presence in Dubai
Bybit has been making several moves lately to reinforce its presence in Dubai. For instance, the crypto exchange recently renewed its partnership with the Dubai Multi Commodities Crypto Centre (DMCC), moving from just the body’s ecosystem partner to its advisory partner.
With the partnership, Bybit would serve as both an ecosystem and advisory partner for DMCC from August 2024 to July 2025.
More so, during the Blockchain Life event in Dubai last April, Bybit launched its key sponsorship of the non-profit Blockchain for Good Alliance (BGA) initiative. The organization cooperates with other individuals, projects, and organizations to leverage Blockchain to address economic, environmental, and social issues.
Bybit is also launching various crypto-related projects in Dubai this November.
Dubai, Becoming A Leader In Cryptocurrency Adoption
Lately, Dubai has been attracting cryptocurrency and Web3 firms that are looking for friendlier crypto zones with its favorable regulatory strides.
In a significant upgrade to Dubai’s regulation, the Dubai International Financial Centre (DIFC) approved Standard Chartered to begin offering digital assets custody services in the UAE.
The country attracted OKX, Binance, and other crypto exchanges into its region. Also, Tether recently announced its plan to launch a stablecoin pegged to the UAE dirham after the approval of the issuance of a new stablecoin licensing and monitoring system by the Central Bank of the UAE (CBUAE).
Aside from Bybit, Chainalysis, a well-known on-chain security firm, also moved its regional headquarters to Dubai on May 8.
Bybit Leaves France Due To Regulatory Pressure
Bybit has announced its plan to leave France in August due to the country’s recent regulatory actions. Bybit mentioned that it will halt its services and products for both residents and citizens of France.
