Bybit Secures In-Principle Approval from UAE’s SCA

Bybit, one of the world’s leading cryptocurrency exchanges, has reached a significant milestone in its expansion efforts.

The company recently announced that it received an in-principle approval from the Securities and Commodities Authority (SCA) of the United Arab Emirates (UAE) to operate as a Virtual Asset Platform Operator in the country.

This approval, dated February 18 and officially disclosed on February 28, brings Bybit one step closer to obtaining a full operational license in the UAE.

The UAE has established itself as a global hub for cryptocurrency and blockchain innovation, thanks to its progressive regulatory framework that fosters growth while prioritizing investor protection.

READ ALSO: Trump Moves to End U.S.-Venezuela Oil Agreement

Bybit’s in-principle approval is part of a broader trend of regulatory approvals for digital asset platforms looking to establish a strong presence in the region. Once fully licensed, Bybit will be able to offer its suite of digital asset services to both individual and institutional clients in the UAE.

Bybit’s regulatory progress comes despite a recent security breach involving its multisignature cold wallet, which resulted in a loss of approximately $1.5 billion.

The Dubai Virtual Assets Regulatory Authority (VARA) acknowledged the incident in a statement to the Khaleej Times, emphasizing that it remains an evolving situation that authorities will continue to monitor closely.

READ ALSO: UK Government Introduces New Crime and Policing Bill to Strengthen Cryptocurrency Asset Recovery

While the security breach raised concerns, Bybit’s ability to secure regulatory approvals suggests confidence in its operational resilience and commitment to compliance.

Beyond the UAE, Bybit is actively working to secure regulatory approvals across multiple key markets, including India, Georgia, Kazakhstan, and Turkey.

The exchange’s expansion strategy underscores its commitment to compliance and global accessibility, reinforcing its position as a major player in the cryptocurrency industry.

Bybit is not the only company making regulatory strides in the UAE. On February 24, the Dubai Financial Services Authority (DFSA) approved Circle’s stablecoins, USD Coin (USDC) and EURC, as the first officially recognized stablecoins under Dubai’s new token regime.

Additionally, in April 2024, Crypto.com’s Dubai-based entity, CRO DAX Middle East FZE, received full operational approval from VARA, enabling the exchange to offer services such as spot trading and staking brokerage to institutional and retail investors.

To enhance investor protection, VARA is also introducing new regulations that will require cryptocurrency businesses in the UAE to disclose the identities of crypto whales—large holders of digital assets.

This initiative aims to provide investors with greater transparency regarding asset concentration and potential market manipulation risks. Furthermore, VARA is considering additional risk disclosure requirements to ensure that investors fully understand the assets they are purchasing.

Bybit’s in-principle approval from the UAE’s SCA marks a significant step forward in its regulatory journey. As the exchange moves closer to obtaining full licensure, it stands to benefit from the UAE’s forward-thinking approach to cryptocurrency regulation.