Bybit's SCA License Bolsters UAE's Global Crypto Ambition

Bybit has become the first cryptocurrency exchange to secure a full Virtual Asset Platform Operator License from the United Arab Emirates' Securities and Commodities Authority (SCA), marking a significant regulatory milestone in the Gulf region. The license, granted on October 9, 2025, authorizes Bybit to offer regulated virtual asset trading, brokerage, custody, and fiat conversion services to both retail and institutional clients across the UAE mainland. This approval follows an in-principle approval (IPA) received in February 2025, which positioned the exchange for full regulatory compliance under the SCA's framework.

The SCA license distinguishes Bybit as the first crypto exchange to achieve this status, surpassing Dubai's Virtual Assets Regulatory Authority (VARA) in scope, as it applies to entities operating beyond Dubai. CEO Ben Zhou emphasized the achievement as a testament to Bybit's commitment to "building trust through compliance and transparency," aligning with the UAE's broader ambition to establish itself as a global digital asset hub. The exchange will expand its regional operations by establishing a larger center in Abu Dhabi, with plans to hire over 500 employees across compliance, operations, and customer service roles. Additionally, Bybit aims to collaborate with local partners on education and Web3 innovation programs.

The regulatory progress comes amid a challenging period for Bybit, which suffered a $1.4 billion security breach in February 2025 during a transfer between cold and hot wallets. Despite the incident, the exchange maintained that customer funds remained secure and replaced the stolen assets. The hack, one of the largest in crypto history, did not derail Bybit's compliance efforts. Co-CEO Helen Liu attributed the SCA's approval to the regulator's "clear and robust framework," enabling Bybit to operate with confidence.

Bybit's UAE license is part of a broader global compliance strategy. In 2025, the exchange secured a Markets in Crypto-Assets (MiCA) license in Europe and resumed operations in India after resolving a $1 million penalty for prior regulatory violations. The company has also expanded into Georgia, Kazakhstan, and Turkey, while temporarily pausing EEA operations to align with MiCA requirements. These moves underscore Bybit's focus on jurisdictional legitimacy as a competitive edge in a tightening regulatory landscape.

The SCA's approval highlights the UAE's proactive approach to digital asset regulation. Bybit's entry into the UAE market aligns with the country's vision to attract fintech innovation and position itself as a global financial hub. The exchange's expansion plans, including a regional operations center in Abu Dhabi, reflect confidence in the UAE's regulatory environment and its potential to foster long-term growth.

Source: [1] Bybit Moves Toward Securing UAE License Amid $1.4 ... (https://defi-planet.com/2025/02/bybit-moves-toward-securing-uae-license-amid-1-4-billion-hack/)

[5] Bybit Secures UAE SCA License, Plans Abu Dhabi Expansion (https://bitnewsbot.com/bybit-secures-uae-sca-license-plans/)

[6] Bybit Becomes First Fully Licensed Crypto Exchange in UAE (https://www.cryptotimes.io/2025/10/09/bybit-becomes-first-fully-licensed-crypto-exchange-in-uae/)

[8] Bybit Secures UAE's First Virtual Asset Platform Operator License ... (https://chainwire.org/2025/10/09/bybit-secures-uaes-first-virtual-asset-platform-operator-license-from-securities-and-commodities-authority/)