Bybit Secures Temporary Crypto License from Dubai
Bybit’s recent acquisition of a temporary crypto license in Dubai highlights the rapid development of regulatory frameworks in this growing hub for the crypto industry. The temporary license, granted by the Virtual Assets Regulatory Authority (VARA), enables Bybit to serve both individual and institutional investors, marking a crucial step towards achieving full operational licensing in the region.
This license underscores Dubai’s strategic importance in Bybit’s global expansion strategy. The company had moved its regional headquarters to Dubai two years ago to strengthen its presence in the area. As Helen Liu, Bybit’s COO, pointed out, Dubai’s innovation-driven policies, crypto-friendly regulations, and central location are major factors that attract large crypto firms like Bybit to the region. Liu mentioned in an interview with Cointelegraph that Dubai is rapidly advancing toward becoming a global hub for blockchain technology and digital assets.
The temporary license supports the rapid growth of Dubai as an increasingly attractive location for both institutional and retail investors in the crypto industry. As part of its regional expansion, Bybit has strengthened its partnership with the Dubai Multi Commodities Centre (DMCC), transitioning from being an ecosystem partner to an important advisory role. Such partnerships reflect the region’s focus on innovative projects and regulations in the crypto industry and its commitment to leveraging new opportunities.
Bybit’s global standing is also noteworthy. According to CoinMarketCap, Bybit ranks as the second-largest crypto exchange in the world by daily derivatives trading volume, right after Binance. With a derivatives volume of $15.8 billion as of September 16, Bybit aims to solidify this strong position by expanding its operations in Dubai.
Another factor contributing to Dubai’s appeal for the crypto sector is the region’s proactive steps in developing crypto-friendly regulations. Particularly in 2023, new regulations announced by VARA and the Securities and Commodities Authority (SCA) allow licensed virtual asset service providers (VASPs) to operate nationwide, facilitating crypto operations and further establishing Dubai as a global crypto center.
Additionally, Dubai’s advancements in the crypto industry extend beyond regulations. Local courts are also making significant decisions to accept cryptocurrencies. For example, the Dubai First Instance Court ruled that salary payments in cryptocurrencies are legally valid under employment contracts, further solidifying the role of cryptocurrencies in the financial system.
The UAE Central Bank’s new licensing system for stablecoins is another development enhancing the region’s attractiveness for crypto companies. This step strengthens the digital asset ecosystem and supports Dubai’s goal of becoming a center for innovative financial solutions. Furthermore, Chainalysis, a leading blockchain security firm, has established a regional office in Dubai and actively collaborates with the local government, boosting confidence in the city’s crypto ecosystem.
Bybit’s strategic move in Dubai is part of its broader growth strategy in the global crypto market. Dubai’s crypto-friendly policies, innovative regulations, and financial infrastructure offer an attractive environment for major players like Bybit, propelling Dubai rapidly towards becoming the global crypto center of the future.
