Bybit's SCA License Outpaces Dubai-Only Rivals in UAE

Bybit, the world's second-largest cryptocurrency exchange by trading volume, has become the first platform to secure the Virtual Asset Platform Operator License from the United Arab Emirates' Securities and Commodities Authority (SCA). This regulatory milestone, announced on October 9, 2025, underscores the UAE's ambition to position itself as a global hub for digital asset innovation and compliance-driven operations. The license, which follows Bybit's In-Principle Approval (IPA) in February 2025, grants the exchange the authority to offer regulated virtual asset trading, brokerage, custody, and fiat conversion services across the UAE mainland. Unlike Dubai's Virtual Assets Regulatory Authority (VARA) framework, which applies only to Dubai, the SCA license covers the entire UAE, providing Bybit with a broader operational scope .

The approval reflects Bybit's adherence to the SCA's rigorous compliance standards, including robust security infrastructure and operational transparency. The exchange attributes its success to collaboration with the Blockchain Centre, Abu Dhabi, which supported navigation of the regulatory framework. This achievement aligns with Bybit's global strategy of securing licenses in key jurisdictions, a roadmap that has already seen the firm obtain the Markets in Crypto-Assets Regulation (MiCAR) license in Europe and resume full operations in India after resolving compliance issues with local authorities .

Under the SCA license, Bybit will expand its services to both retail and institutional clients, offering a full suite of regulated virtual asset solutions. The exchange plans to establish a larger regional operations center in Abu Dhabi, aiming to employ over 500 staff across Abu Dhabi and Dubai. This expansion will focus on roles in compliance, operations, and customer service, while also introducing education and Web3 innovation programs in collaboration with local partners. Bybit's CEO, Ben Zhou, emphasized that the license "demonstrates our commitment to building trust through compliance and transparency" and highlights the UAE's leadership in digital asset regulation .

The regulatory developments in 2025 have positioned Bybit as a strategic player in the evolving crypto landscape. In India, the exchange paid a $1.06 million fine to the Financial Intelligence Unit (FIU) and re-registered under the Prevention of Money Laundering Act (PMLA), enabling full trading resumption in September 2025. These actions reflect Bybit's proactive approach to aligning with national regulations, a strategy that CEO Ben Zhou described as "a new chapter" for the firm's expansion in Asia .

The SCA license also strengthens Bybit's competitive edge in the UAE, where it now operates under a federal framework that distinguishes it from exchanges with provisional VARA licenses, such as Binance and OKX. This distinction allows Bybit to serve clients across all seven Emirates, rather than being confined to Dubai's jurisdiction. Co-CEO Helen Liu praised the SCA's "clear and structured regulatory approach," noting that the license reinforces the firm's long-term commitment to the UAE's digital asset ecosystem. Bybit's expansion plans include deepening institutional partnerships and enhancing educational initiatives to support local talent development .

The licensing process marks a significant step in the UAE's broader vision to attract global fintech innovation. Bybit's entry into the UAE's regulated market aligns with the country's efforts to attract crypto firms while maintaining high standards of security and governance. The exchange's compliance-first approach has been critical to its success, with the firm emphasizing that regulatory alignment is foundational to sustainable growth. As Bybit continues its global expansion, the SCA license underscores its ability to navigate diverse regulatory environments, positioning it as a key player in the maturing digital asset sector .

Source: [1] PRNewswire (https://www.prnewswire.com/news-releases/bybit-secures-uaes-first-virtual-asset-platform-operator-license-from-securities-and-commodities-authority-302580001.html) [2] Coindesk (https://www.coindesk.com/business/2025/10/09/bybit-snags-uae-s-virtual-asset-platform-operator-license-from-securities-and-commodities-authority) [3] Bitnewsbot (https://bitnewsbot.com/bybit-secures-uae-sca-license-plans/) [4] Cryptotimes (https://www.cryptotimes.io/2025/10/09/bybit-becomes-first-fully-licensed-crypto-exchange-in-uae/) [5] CoinCentral (https://coincentral.com/bybit-becomes-first-exchange-to-gain-uaes-full-sca-crypto-license/) [6] Financemagnates (https://www.financemagnates.com/cryptocurrency/bybit-becomes-first-crypto-exchange-fully-licensed-by-uaes-sca/)