Bybit's Compliance Win Drives UAE's Crypto Hub Vision

Bybit has become the first cryptocurrency exchange to obtain a full Virtual Asset Platform Operator license from the United Arab Emirates' Securities and Commodities Authority (SCA), marking a significant regulatory milestone for the company and the UAE's broader ambitions to establish itself as a global digital asset hub. The license, announced in October 2025, authorizes Bybit to provide regulated services-including virtual asset trading, brokerage, custody, and fiat conversion-to both retail and institutional clients across the UAE mainland. This distinguishes Bybit from other exchanges operating in Dubai under the Virtual Assets Regulatory Authority (VARA) framework, which applies only within Dubai's jurisdiction.

The SCA license represents a strategic expansion for Bybit, which already holds a provisional VARA license and operates in multiple markets. The exchange plans to deepen its local presence by establishing a regional operations center in Abu Dhabi, with over 500 employees across Abu Dhabi and Dubai. The move includes investments in compliance, operations, and customer service, as well as partnerships to launch education and Web3 innovation programs. Bybit's CEO, Ben Zhou, emphasized that the license underscores the company's commitment to "building trust through compliance and transparency," aligning with the UAE's regulatory focus on balancing innovation with investor protection.

The UAE's regulatory environment has evolved rapidly in 2025, with the SCA introducing stringent capital and operational requirements for virtual asset service providers (VASPs). For instance, entities operating as virtual asset platform operators must maintain a minimum capital of AED 1 million (or AED 5 million if offering additional services). Bybit's ability to secure the license reflects its adherence to these standards, which include robust technology governance, anti-money laundering (AML) protocols, and consumer risk disclosures. The SCA's framework also mandates real-time transaction reporting and measures to prevent market abuse, further reinforcing regulatory oversight.

Bybit's regulatory achievements in the UAE follow a series of global milestones in 2025. The exchange obtained a Markets in Crypto Assets (MiCA) license in the European Union in May and resumed full trading operations in India in September after compliance adjustments. These developments highlight Bybit's proactive engagement with regulators, a strategy increasingly valued by institutional investors seeking stable, compliant trading partners. The company's success in the UAE also positions it to capitalize on the region's growing crypto adoption, with over 27.67% of the UAE's population owning virtual assets, compared to a global average of 6.9%.

The SCA license offers Bybit a competitive edge over rivals such as Binance and OKX, which hold provisional licenses under Dubai's VARA regime. Unlike VARA, the SCA license applies nationwide, enabling Bybit to extend its services beyond Dubai's jurisdiction. This broader reach aligns with the UAE's efforts to attract global crypto firms amid regulatory tightening in jurisdictions like Singapore, where new rules have prompted a "crypto exodus" to more business-friendly environments. Dubai, in particular, has emerged as a preferred destination, with over $30 billion in crypto-related investments recorded in 2024 alone.

Bybit's expansion in the UAE underscores the country's dual role as a regulatory innovator and a hub for digital asset infrastructure. The exchange's plans to hire 500 staff and collaborate on Web3 initiatives align with the UAE's economic diversification goals and its ambition to lead in blockchain technology. As the SCA refines its regulatory framework, the approval of Bybit's license signals a shift in the global crypto landscape, with compliant exchanges increasingly favoring jurisdictions that combine innovation with robust oversight.

[1] Coindesk (https://www.coindesk.com/business/2025/10/09/bybit-snags-uae-s-virtual-asset-platform-operator-license-from-securities-and-commodities-authority)

[2] Cryptonews.net (https://cryptonews.net/news/market/31766925/)

[3] Financefeeds.com (https://financefeeds.com/bybit-becomes-uaes-first-licensed-virtual-asset-exchange/)

[4] Cryptoverselawyers.io (https://www.cryptoverselawyers.io/sca-guideline-2025-for-vasps-uae/)

[5] Sumsub.com (https://sumsub.com/blog/crypto-in-the-uae-regulation-licensing/)

[6] Khaleejtimes.com (https://www.khaleejtimes.com/business/cryptocurrency/dubai-cryptocurrency-hub-global-firms-leave-singapore)