Bybit, the world’s second-largest cryptocurrency exchange for derivatives trading, has obtained a provisional license in Dubai after establishing its headquarters in the city two years ago. The centralized exchange has been granted a non-operational license from the Virtual Asset Regulatory Authority (VARA), signaling a significant milestone in its global expansion strategy. Bybit’s Chief Operating Officer, Helen Liu, stated that the license reflects the company’s commitment to Dubai’s vision of becoming a leading blockchain hub and its attractiveness to crypto companies due to its favorable regulations. UAE regulators have also made a noteworthy announcement, allowing Dubai-licensed virtual asset service providers (VASPs) to operate throughout the entire country. While the provisional license permits Bybit to cater to retail and institutional investors in Dubai, the exchange is actively working towards obtaining a full operational license in the region. Bybit’s decision to choose Dubai as its headquarters was based on the city’s regulatory foresight in the emerging digital asset industry. CoinMarketCap data reveals that Bybit is the second-largest crypto exchange in terms of 24-hour derivatives volume, with over $15.8 billion worth of derivatives traded on September 16, trailing behind Binance’s $38.5 billion. Dubai has been diligently enhancing its regulatory framework to attract more Web3 and crypto companies seeking crypto-friendly environments. The recognition of crypto salary payments as valid under employment contracts by the Dubai Court of First Instance and the approval of a new stablecoin licensing and monitoring system by the Central Bank of the UAE are examples of the country’s efforts. Other prominent crypto firms, such as Binance and Chainalysis, have also obtained licenses or established headquarters in Dubai, further solidifying its position as a global crypto hub.
Dubai regulator grants Bybit provisional crypto license