Bybit secures provisional approval for crypto operations in Dubai

Cryptocurrency exchange ByBit has received a temporary license from Dubai’s crypto regulator.

ByBit has received provisional approval for a Virtual Asset Service Provider license from the Dubai Virtual Asset Regulatory Authority, marking the completion of the first step before a full operating license is granted, according to a September 16 announcement.

As part of the approval process, Bybit underwent a thorough review to ensure compliance with standards set by Dubai’s crypto regulator.

Bybit’s Chief Operating Officer Helen Liu noted that Dubai’s “strategic location, progressive policies, and innovation-driven environment” offer a thriving market for crypto businesses. She added that Dubai’s “robust regulatory framework” and “strong commitment to becoming a blockchain capital” make it an ideal location to “advance digital currencies.”

ByBit first set foot in Dubai after establishing its international headquarters in 2022 and has since been involved in various initiatives focused on promoting the crypto and web3 sector. The exchange recently renewed its partnership with Dubai Multi Commodities Centre, a free trade zone, to support the development of the web3 ecosystem as an advisor.

The move is part of ByBit’s global expansion efforts. Earlier this month, the exchange received official approval from the Astana Financial Services Authority, allowing it to obtain a license to operate in Kazakhstan. Prior to that, the exchange received a VASP license from the Argentine General Inspectorate of Justice.

Dubai has been actively positioning itself as a global leader in the cryptocurrency space with several recent moves. Bybit’s announcement follows the recent agreement signed between the United Arab Emirates Securities and Commodities Authority and VARA on September 9, allowing crypto exchanges licensed in Dubai to offer their services throughout the country.

Additionally, this agreement follows a groundbreaking ruling by the Dubai Court of First Instance, which recognized cryptocurrency as a valid form of salary payment. In a case involving an employee’s unpaid wages in EcoWatt tokens, the court ruling supported the use of crypto in employment contracts, requiring the employer to pay the agreed payment in tokens, thus confirming the legitimacy of cryptocurrencies in such agreements.

In related news, it is stated that cryptocurrency exchange Binance also received a VASP License from VARA in June 2024.