Bybit's UAE License Cements Nation's Status as Premier Crypto Hub

Bybit has secured the United Arab Emirates' first Virtual Asset Platform Operator License from the Securities and Commodities Authority (SCA), becoming the first cryptocurrency exchange to operate under full regulatory approval across the UAE mainland Coindesk^[1]. The license, announced on October 9, 2025, enables Bybit to provide regulated virtual asset trading, brokerage, custody, and fiat conversion services to both retail and institutional clients Yahoo Finance^[2]. This milestone positions Bybit to expand its operations beyond Dubai's jurisdiction under the Virtual Assets Regulatory Authority (VARA) framework, which applies only to Dubai's free zones PR Newswire^[3].

The SCA license follows Bybit's In-Principle Approval (IPA) in February 2025, facilitated by the Blockchain Centre, Abu Dhabi, and reflects the regulator's confidence in the exchange's compliance infrastructure and operational transparency Blockonomi^[4]. Bybit CEO Ben Zhou emphasized that the approval underscores the company's commitment to "building trust through compliance and transparency" and aligns with the UAE's global leadership in digital asset regulation CoinCentral^[5]. The exchange plans to establish a larger regional operations center in Abu Dhabi, creating over 500 jobs across compliance, operations, and customer service roles in Abu Dhabi and Dubai Cryptonews^[6]. Additionally, Bybit will collaborate with local partners to launch Web3 education and innovation programs, supporting the UAE's Vision 2031 goals Chooseabroker^[7].

The SCA's regulatory scope extends beyond Dubai, covering entities operating on the UAE mainland. Bybit, already holding a provisional VARA license, now operates under dual regulatory frameworks, enhancing its ability to serve a broader client base TMCnet^[8]. This development aligns with the UAE's broader strategy to solidify its position as a global crypto hub. The country ranks first in the 2025 global crypto adoption index, with over $30 billion in crypto transactions recorded between July 2023 and June 2024 Cryptonews^[9]. Dubai's VARA has recently enforced penalties on 19 unlicensed crypto firms, signaling a tightening regulatory environment CoinCentral^[10].

Bybit's expansion in the UAE follows a series of global regulatory milestones in 2025. The exchange secured a Markets in Crypto-Assets (MiCA) license in May, enabling operations in 29 European Economic Area countries, and resumed full trading in India in September after resolving compliance issues with local authorities Blockonomi^[11]. These achievements reflect a "compliance-first" strategy, with Bybit prioritizing regulatory approvals before market entry to mitigate legal risks CoinCentral^[12]. The exchange's global trading volume remains robust, driven by its security-focused infrastructure and diverse product offerings.

The SCA license is expected to accelerate the UAE's emergence as a premier destination for crypto firms. Tether has announced plans for a dirham-pegged stablecoin in the region, while other exchanges, including Crypto.com and HashKey Group, have secured VARA licenses to operate in Dubai Cryptonews^[13]. Abu Dhabi's regulatory initiatives, such as the 2023 framework for blockchain foundations and decentralized autonomous organizations, further reinforce the emirate's appeal to digital asset innovators Blockonomi^[14].