Cryptocurrency exchange Bybit has become the first digital asset platform to receive a full Virtual Asset Platform Operator License from the Securities and Commodities Authority (SCA) of the United Arab Emirates (UAE), marking a key regulatory milestone for the region’s crypto ecosystem.
Regulatory milestone for the UAE
The SCA license, announced on Thursday via a press release, authorizes Bybit to offer regulated trading, brokerage, custody, and fiat conversion services across the UAE for both retail and institutional clients.
This approval allows Bybit to operate beyond Dubai’s Virtual Assets Regulatory Authority (VARA) jurisdiction, extending its reach across the mainland under the UAE’s federal framework.
The license follows the company’s In‑Principle Approval (IPA) granted by the SCA in February 2025. According to the firm, the process was completed with assistance from Abu Dhabi’s Blockchain Center, which guided the exchange through the regulator’s compliance and risk management structure.
Bybit’s achievement is notable because several crypto firms operating in Dubai are registered under VARA, while SCA oversight applies at the federal level. The distinction confirms that Bybit now holds the most comprehensive authorization available to digital asset service providers in the UAE.
Bybit’s response
Bybit co‑founder and chief executive Ben Zhou said in a press statement that the new license reflects the exchange’s efforts to strengthen trust through compliance.
“Receiving the full Virtual Asset Platform Operator License from the SCA is a testament to Bybit’s commitment to building trust through compliance and transparency,” Zhou said.
He added that the UAE’s clear regulatory environment supports innovation while ensuring user protection.
Co‑CEO Helen Liu credited the SCA’s “structured and transparent regulatory framework” with enabling compliant innovation, describing the approval as validation of recent efforts to meet international standards.
The company plans to expand its regional headquarters in Abu Dhabi, which already serves as its hub for the Middle East and North Africa. It intends to hire more than 500 additional staff across Abu Dhabi and Dubai, focusing on compliance, operations, and customer service. The firm will also collaborate with local universities and technology partners on blockchain education and Web3 innovation projects.
Global compliance and expansion
Bybit, headquartered in Dubai, is currently the world’s second‑largest cryptocurrency exchange by trading volume, according to CoinMarketCap data. The UAE license adds to the company’s growing list of regulatory achievements. Earlier in 2025, Bybit received authorization under the European Union’s Markets in Crypto‑Assets (MiCA) framework and re‑entered the Indian market after settling compliance issues with the Financial Intelligence Unit.
Each of these approvals demonstrates the company’s strategy of obtaining region‑specific regulatory clearances rather than operating through unregistered entities, a practice that regulators in multiple jurisdictions have targeted in recent years.
Impact on the UAE’s digital finance landscape
The UAE has worked to position itself as a regulated global hub for digital assets through initiatives such as Vision 2031, which emphasizes technological innovation alongside investor protection.
The SCA’s full license for Bybit represents a milestone in the country’s goal of unifying crypto oversight across its emirates. It follows recent cooperation between SCA and VARA to streamline licensing reciprocity for crypto businesses operating in both Dubai and mainland jurisdictions.
The SCA approval could attract additional exchanges to seek nationwide licensing rather than relying solely on Dubai’s VARA regime. For the UAE, the move signals continued progress toward developing a consistent, transparent regulatory environment for digital assets and tokenized financial services.
What’s next
Bybit said it will begin rolling out its authorized services over the coming months, including regulated virtual asset trading and custody options for both retail traders and institutional clients. The company also plans to launch localized educational initiatives aimed at raising awareness of safe crypto investing and supporting fintech start‑ups in the region.
The SCA has not disclosed specific license terms, but authorization generally requires compliance with strict capital adequacy, cybersecurity, and governance standards. The approval effectively positions Bybit as the first exchange fully recognized under the UAE’s federal Virtual Asset Service Provider (VASP) rules.
Gunel Ismayilova
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