Major cryptocurrency exchange Bybit has taken another significant step forward in its Middle Eastern expansion strategy by securing a full Virtual Asset Service Provider (VASP) license in Dubai. The regulatory milestone authorizes the exchange’s local entity, Bybit Fintech FZE, to provide exchange services, most notably spot trading, within the emirate.
The development comes following an earlier in-principle approval granted by Dubai’s specialized regulatory body, the Virtual Assets Regulatory Authority (VARA). While the previous status marked an important procedural milestone, a company spokesperson clarified that the earlier in-principle approval was strictly non-operational and did not legally permit the platform to onboard or serve customers residing within Dubai.
According to VARA’s official public register, the newly issued license is currently active. The regulatory status officially clears the path for Bybit to extend its digital asset exchange services to a broad spectrum of market participants in the region, encompassing retail traders, qualified investors, and large-scale institutional clients alike.
Despite the active listing on the regulatory register, Bybit’s local operations are not quite ready to open for business. The company spokesperson noted that the exchange must still successfully navigate and complete VARA’s rigorous final launch process and fulfill all remaining operational requirements before it can officially inaugurate its spot trading services. At the time of the announcement, the exchange elected not to disclose a specific timeline or target date for the official platform launch.
The latest authorization in Dubai adds a complex layer to Bybit’s broader regulatory footprint within the United Arab Emirates. Previously, in October 2025, the cryptocurrency exchange successfully secured a full Virtual Asset Platform Operator license from the UAE’s federal-level regulatory authority, the Securities and Commodities Authority (SCA). However, despite the federal backing of the SCA license, Bybit’s existing jurisdictional scope featured distinct geographical carve-outs.
Specifically, the service restrictions outlined by the exchange explicitly exclude Dubai from the jurisdictions serviced by its SCA-licensed corporate entity, known as Bybit Virtual Asset Platform Operator LLC. When asked to clarify the exact legal distinctions between the federal SCA approval and the newly acquired municipal VARA license, or to confirm whether the earlier federal license ever permitted direct operations within Dubai, the Bybit spokesperson declined to comment further.
The regulatory progression in Dubai underscores the meticulous compliance frameworks governing virtual asset service providers in the United Arab Emirates. VARA, established as an independent regulator to oversee the burgeoning crypto sector within the Emirate of Dubai outside the Dubai International Financial Centre (DIFC), enforces stringent operational safeguards to protect investors while fostering a secure environment for blockchain innovation. As Bybit works to fulfill the final operational mandates required by the regulator, the crypto community awaits the official rollout of its spot trading services under the newly minted VASP license.
Crypto Regulation & Policy
Crypto Regulation & Policy
Crypto Regulation & Policy
