Bybit secures provisional approval for crypto operations in Dubai

Crypto exchange ByBit has secured a provisional license from Dubai’s crypto regulator.

According to Sept. 16 announcement, ByBit has received provisional approval for a Virtual Asset Service Provider license, from Dubai’s Virtual Assets Regulatory Authority, marking the completion of the first step before it’s issued a full operating license.

As part of the approval process, Bybit went through a detailed review to ensure compliance with standards set by Dubai’s crypto regulator.

Helen Liu, Chief Operating Officer of Bybit, noted that Dubai’s “strategic location, progressive policies, and innovation-driven environment” offers a thriving market for crypto businesses. She added that Dubai’s “robust regulatory framework” and a strong “commitment to becoming a blockchain capital,” makes it the ideal place to “advance digital currencies.”

ByBit initially stepped into Dubai, after establishing its international headquarters in 2022, and has since been involved in several initiatives focused on promoting the crypto and web3 sector. The exchange recently renewed its partnership with the Dubai Multi Commodities Centre, a free trade zone, to promote the development of the web3 ecosystem as an advisor.

The move is a part of ByBit’s global expansion efforts. Earlier this month, the exchange received formal consent from the Astana Financial Services Authority, which would allow it to receive a license to operate in Kazakhstan. Before that, the exchange secured a VASP license from Argentina‘s General Inspectorate of Justice.

Dubai is actively positioning itself as a global leader in the cryptocurrency space through several recent moves. Bybit’s announcement follows a recent agreement between the United Arab Emirates’s Securities and Commodities Authority and the VARA on Sept. 9, which allows crypto exchanges licensed in Dubai to offer their services across the entire country.

Additionally, this agreement comes in the wake of a landmark ruling by the Dubai Court of First Instance, which recognized cryptocurrency as a valid form of salary payment. The court’s decision, made in a case involving an employee’s unpaid wages in EcoWatt tokens, upheld the use of crypto for employment contracts, mandating the employer to fulfill the agreed payment in tokens, thereby affirming the legitimacy of cryptocurrencies in such agreements.

In related news, crypto exchange Binance also secured a VASP License from VARA in June 2024.