Bybit has made history by becoming the first cryptocurrency exchange to obtain a Virtual Asset Platform Operator License from the UAE’s Securities and Commodities Authority (SCA). This milestone marks a significant expansion of Bybit’s operations in the UAE mainland, solidifying its position as a global leader in digital asset regulation.
Ben Zhou, the co-founder and CEO of Bybit, expressed his excitement about this achievement, stating that the UAE’s recognition of Bybit’s security and governance standards underscores the exchange’s commitment to compliance and transparency.
Under the SCA framework, Bybit will offer regulated virtual asset trading, brokerage, custody, and fiat conversion services to both retail and institutional clients throughout the country. This regulatory approval extends beyond Dubai’s Virtual Assets Regulatory Authority (VARA) framework, allowing Bybit to operate across different UAE jurisdictions.
Bybit had previously received an In-Principle Approval from the SCA in February 2025, working closely with the Blockchain Centre Abu Dhabi to meet regulatory requirements. Despite facing a $1.4 billion hack in February, Bybit has continued to forge ahead with its global expansion plans, securing regulatory approvals in various jurisdictions.
The UAE has emerged as a premier destination for cryptocurrency firms seeking regulatory clarity, ranking first in the global crypto adoption index in 2025. Dubai’s VARA has recently sanctioned unlicensed crypto firms for operating without proper authorization, demonstrating the regulator’s commitment to enforcement.
Major exchanges like Crypto.com, Deribit, and HashKey Group have obtained licenses from VARA to operate in Dubai, with HashKey launching HashKey Global MENA to serve institutional clients. Additionally, a state-backed Abu Dhabi investment firm has committed $2 billion to Binance via the USD1 stablecoin.
The UAE’s regulatory pathways offer both opportunities and complexities for crypto firms, requiring them to navigate overlapping jurisdictions while maintaining compliance. Tether has announced plans to launch a dirham-pegged stablecoin in the region, signaling further growth in the digital asset economy.
Regulations in the UAE remain fragmented, with different frameworks governing Dubai’s free zones and the broader UAE mainland under SCA oversight. Bybit’s SCA license positions the exchange to capitalize on the UAE’s growing digital asset economy, which saw over $30 billion in crypto transactions between July 2023 and June 2024.
Overall, Bybit’s regulatory approval from the SCA marks a significant milestone in the exchange’s journey towards global expansion and compliance. The UAE’s commitment to fostering a conducive regulatory environment for digital assets further solidifies its position as a leading jurisdiction for crypto businesses.