Bybit Secures Provisional Crypto License in Dubai, Advancing Regional Expansion
Bybit, one of the world’s leading cryptocurrency exchanges, has taken a significant step towards solidifying its presence in the Middle East by obtaining a provisional license from Dubai’s Virtual Assets Regulatory Authority (VARA). The non-operational approval, announced on September 16, 2024, marks a crucial milestone in Bybit’s journey towards securing full operational status as a Virtual Asset Service Provider (VASP) in Dubai.
This development comes two years after Bybit established its global headquarters in Dubai, underscoring the company’s commitment to the region’s growing crypto ecosystem. The provisional license will allow Bybit to offer virtual asset exchange services to retail, qualified investors, and institutional users once full approval is granted.
Helen Liu, Chief Operating Officer of Bybit, emphasized the strategic importance of Dubai in the company’s global expansion plans. “Dubai’s strategic location, progressive policies, and innovation-driven environment offer unparalleled opportunities for businesses and investors in the cryptocurrency sector,” Liu stated. She added that Dubai’s robust regulatory framework and commitment to becoming a blockchain capital make it an ideal location for advancing digital currencies and fostering industry growth.
The licensing process, overseen by VARA, is known for its thoroughness and collaborative approach, reflecting Dubai’s commitment to maintaining a robust and innovative virtual assets ecosystem. Bybit has engaged in constructive dialogue with the regulator to meet the stringent requirements for provisional approval effectively.
In addition to seeking regulatory compliance, Bybit has been actively involved in Dubai’s crypto community. The exchange recently renewed its partnership with the Dubai Multi Commodities Crypto Centre (DMCC), transitioning from a key ecosystem partner to an advisory role with the DMCC Crypto Hub. This move further cements Bybit’s position as a leading contributor to Dubai’s thriving crypto and Web3 industry.
Bybit’s expansion in Dubai aligns with the emirate’s broader vision of becoming a global leader in blockchain and digital assets. The establishment of VARA in 2021 under the Dubai Virtual Asset Regulation Law has positioned the city as an attractive destination for major crypto brands. Other industry giants, including Binance, Crypto.com, and Blockchain.com, have also secured licenses in the jurisdiction.
The crypto exchange’s growth is not limited to regulatory achievements. Recent data from Coinmarketcap.com shows that Bybit handled over $3.8 billion in crypto trading volume and more than $16.2 billion in derivatives volume in a 24-hour period, ranking second only to Binance. A report by Kaiko highlighted that Bybit’s market share doubled from 8% to 16% between October 2023 and June 2024, outpacing the growth of competitors like Coinbase.
As Bybit continues to work towards full operational approval in Dubai, the crypto industry will be watching closely to see how this expansion impacts the broader digital asset landscape in the Middle East and beyond.
