In a significant development for the cryptocurrency industry, Bybit, currently the world’s second-largest exchange by trading volume, has announced that it has secured a Virtual Asset Platform Operator License from the Securities and Commodities Authority (SCA) of the United Arab Emirates (UAE). This milestone makes Bybit the first cryptocurrency exchange to obtain such a comprehensive license from the SCA, marking a crucial step in the regulation of virtual assets within the region.
The SCA regulation, which covers the UAE mainland, brings a broader scope than the existing VARA framework that regulates several crypto firms operating in Dubai. With this new license, Bybit plans to enhance its offerings by providing regulated virtual asset trading, brokerage, custody, and fiat conversion services tailored for both retail and institutional clients across the UAE.
“Receiving the full Virtual Asset Platform Operator License from the SCA is a testament to Bybit’s unwavering commitment to building trust through compliance and transparency,” said Bybit CEO Ben Zhou in a statement.
To solidify its presence, Bybit intends to expand its regional operations by establishing a larger center in Abu Dhabi, aiming to hire over 500 employees focused on compliance, operations, and customer service. In addition to these operational enhancements, Bybit is set to introduce educational initiatives and innovative Web3 programs in partnership with local entities, reflecting a deepening commitment to the evolving cryptocurrency landscape.
This development follows Bybit’s previous achievements, including receiving In-Principle Approval (IPA) from the SCA in early 2025, aided by the Blockchain Centre in Abu Dhabi, and the acquisition of a Markets in Crypto Assets (MiCA) license earlier this year. The exchange also recently resumed full trading operations in India, highlighting its aggressive expansion strategy in key markets.
Bybit Secures Virtual Asset License in UAE
Here are the key points regarding Bybit’s recent achievement and its implications:
- License Acquisition: Bybit has obtained a Virtual Asset Platform Operator License from the UAE’s SCA, making it the first crypto exchange to achieve this status.
- Regulatory Scope: The SCA regulation covers the entire UAE mainland, unlike the VARA framework, which is specific to Dubai.
- Service Offerings: Bybit will provide regulated virtual asset trading, brokerage, custody, and fiat conversion services to retail and institutional clients.
- Local Expansion: Bybit plans to establish a larger operations center in Abu Dhabi with over 500 employees, enhancing local services and compliance.
- Community Engagement: The company aims to introduce education and Web3 innovation programs in collaboration with local partners.
- Previous Licenses: Bybit previously received In-Principle Approval from the SCA and has a Markets in Crypto Assets (MiCA) license.
- Commitment to Compliance: Bybit’s CEO emphasized the importance of compliance and transparency in building trust in the cryptocurrency market.
These developments may impact readers by showcasing a more regulated crypto landscape in the UAE, potentially increasing trust and participation in digital asset trading.
Bybit Obtains Groundbreaking Regulatory License in the UAE
Bybit, a major player in the cryptocurrency exchange landscape, has successfully secured a Virtual Asset Platform Operator License from the UAE’s Securities and Commodities Authority (SCA). This positions Bybit as a trailblazer, being the first crypto exchange to receive such a comprehensive license, which significantly enhances its credibility and operational scope within the region.
In comparison to other crypto firms operating primarily under Dubai’s VARA framework, Bybit’s full compliance with the SCA’s broader regulations offers distinct competitive advantages. Unlike VARA, which subjects firms to specific conditions within Dubai, the SCA license applies throughout the entire UAE mainland, creating a favorable environment for broader market engagement. This means that Bybit can expand its services without the jurisdictional constraints that others may face, thus appealing to both retail and institutional clients seeking reliable and regulated trading options.
However, this development may pose challenges for other exchanges operating in the UAE under less comprehensive regulations. With Bybit’s enhanced reputation for compliance, competitors could find themselves at a disadvantage, struggling to attract clients wary of unregulated platforms. Moreover, Bybit’s plans for a substantial regional hub in Abu Dhabi—employing over 500 personnel—will likely draw talent from the local market, intensifying competition for skilled workers in the crypto sector.
This strategic maneuver by Bybit could greatly benefit institutional investors seeking stability and regulation in their trading activities. It also opens opportunities for partnerships with local enterprises and educational initiatives, establishing Bybit as a leader in local crypto education and innovation. Conversely, smaller exchanges may encounter difficulties adapting to the new regulatory standards that Bybit has set, potentially losing market share if they cannot keep pace with compliance demands.
Overall, Bybit’s aggressive strategy not only reinforces its market position but also reshapes the competitive landscape of the Middle Eastern cryptocurrency market, where the significance of regulatory compliance continues to rise.
