Cryptocurrency exchange Bybit has obtained a full Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA). It is permitted to provide spot trading services to its clients in the emirate. The approval marks another step in the company’s efforts to expand its licensed operations in the United Arab Emirates. Still, the license does not automatically allow Bybit to offer derivatives trading services in Dubai it would need separate regulatory approval to introduce those.
Spot trading refers to the buying and selling of cryptocurrencies at their current market prices. Derivatives, in turn, are financial products whose value derives from the price of an underlying asset and these products carry additional risks that regulators typically impose specific rules on their trading.
Bybit said that it planned to expand its licensed business over time while continuing its discussions with VARA. Peter Loo, the exchange’s chief legal and compliance officer, said that it hoped to add derivatives trading services in the future, subject to the required approvals. He noted that these products comprise a significant proportion of the Bybit’s global trading business.
Dubai has been an important part of Bybit’s journey since we established our international HQ here in 2022.
Securing our VARA licence is another step in building for the long term.
With trust, compliance and local commitment at the core.— Ben Zhou (@benbybit) October 22, 2026
Bybit CEO Ben Zhou also welcomed the approval of its latest application, pointing out that Dubai had made progress in regulating virtual assets. The company said it wanted to support the local digital asset community while adhering to the standards set by the regulator.
The latest license builds on efforts by Bybit that have spanned several years in Dubai. The company set up its international headquarters there in 2022. In August 2024, VARA granted the company provisional approval as it worked toward fulfilling the requirements for a full license.
Bybit has also pursued licenses and regulatory approvals in other jurisdictions. The company reported progress in jurisdictions including the European Union, the Cayman Islands, Indonesia, South Africa and El Salvador during 2026. Different entities within the wider Bybit group operate in different jurisdictions, and their permissions are subject to local rules.
Other cryptocurrency companies have also been seeking regulatory approval in Dubai. Kraken has received approval from Payward structure and outlined plans to offer UAE dirham trading pairs and local-currency deposits. Meanwhile, Robinhood received approval from Dubai’s Financial Services Authority to offer retail investment services in the Dubai International Financial Centre a regulator that operates separately from VARA.
Dubai has been developing a regulatory framework to help companies that provide virtual asset services. Licensed businesses must adhere to rules covering areas such as risk management, compliance and customer protection.
For Bybit, the license provides an opportunity to offer spot trading services under the jurisdiction of Dubai’s regulatory framework. It also gives the company a clearer pathway to seek approval for additional products, albeit subject to fulfilling further requirements.
It highlights the importance of regulation in the cryptocurrency industry. Exchanges that seek to cater to customers across markets will need to comply with local laws rather than simply assuming that approval in one jurisdiction will grant them access to all others. Bybit’s next step will be to build on its efforts to continue expanding its licensed business in Dubai and pursuing further permissions if it wishes to introduce additional products.
Stay informed with the latest trends in Web3, blockchain innovation, and cybersecurity updates at 3verseTV
You need to login in order to Like
Leave a comment