Bybit has secured a Virtual Asset Platform Operator License from the UAE’s Securities and Commodities Authority, becoming the first crypto exchange to obtain full regulatory approval from the SCA.
The world’s second-largest cryptocurrency exchange by trading volume announced the milestone on Thursday, marking a major expansion of its operations across the UAE mainland.
“The UAE has emerged as a global leader in digital asset regulation, and this recognition underscores the strength of our security and governance standards,” said Ben Zhou, co-founder and CEO of Bybit, in an official statement.
Under the SCA framework, Bybit will offer regulated virtual asset trading, brokerage, custody, and fiat conversion services to both retail and institutional clients throughout the country.
SCA License Expands Bybit’s Reach Beyond Dubai’s VARA Framework
The SCA’s regulatory scope extends beyond Dubai’s Virtual Assets Regulatory Authority (VARA) framework, applying to entities operating across the UAE mainland outside VARA’s jurisdiction.
Bybit also holds a provisional license under the VARA framework, giving the exchange dual regulatory coverage across different UAE jurisdictions.
The company initially received its In-Principle Approval from the SCA in February 2025, working with the Blockchain Centre Abu Dhabi to meet the regulatory requirements.
“Receiving the full Virtual Asset Platform Operator License from the SCA is a testament to Bybit’s unwavering commitment to building trust through compliance and transparency,” said Bybit CEO Ben Zhou in a statement.
This approval came just days before Bybit suffered a $1.4 billion hack on February 21, one of the largest crypto security breaches in history, which occurred during a transfer between the exchange’s cold and hot wallets.
Despite the security incident, Bybit has continued to push forward with its global expansion plans, securing regulatory approvals across multiple jurisdictions in recent months.
In September, the exchange resumed full trading operations in India after registering with the Financial Intelligence Unit-India and paying a $1.06 million penalty for previous violations of the Prevention of Money Laundering Act.
Earlier this year, Bybit also secured a Markets in Crypto Assets license from Austria’s Financial Market Authority, unlocking access to 29 European Economic Area countries and establishing its European headquarters in Vienna.
UAE Solidifies Position as Premier Crypto Jurisdiction Amid Global Competition
The UAE has positioned itself as a leading destination for crypto firms seeking regulatory clarity, ranking first in the 2025 global crypto adoption index after 210% growth.
Dubai’s VARA recently sanctioned 19 unlicensed crypto firms with fines ranging from $27,000 to $163,000 for operating without proper authorization, demonstrating the regulator’s commitment to enforcement.
Major exchanges, including Crypto.com, Deribit, and HashKey Group, have obtained licenses from VARA to operate in Dubai, while HashKey recently launched HashKey Global MENA to serve institutional and high-net-worth clients.
Meanwhile, a state-backed Abu Dhabi investment firm recently committed $2 billion to Binance via the USD1 stablecoin developed by World Liberty Financial with ties to the Trump family.
The Abu Dhabi Global Market unveiled separate regulations in 2023 for blockchain foundations and decentralized autonomous organizations operating within its international free-trade zone.
Industry executives view the UAE’s multiple regulatory pathways as both an opportunity and a source of complexity, requiring exchanges to manage overlapping jurisdictions while maintaining compliance across different authorities.
Given the improving regulatory environment compared to other regions, Tether has announced plans to launch a dirham-pegged stablecoin in the region, while numerous venture capital funds and blockchain businesses continue to establish operations across the Emirates.
However, regulations remain fragmented, with different frameworks governing Dubai’s free zones versus the broader UAE mainland under SCA oversight.
Pakistan has similarly opened its doors to international crypto exchanges by inviting them to apply for licenses under its newly formed Pakistan Virtual Assets Regulatory Authority, requiring applicants to already hold licenses from top global regulators.
Bybit’s SCA license will position the exchange to capitalize on the UAE’s growing digital asset economy, which received over $30 billion in crypto transactions between July 2023 and June 2024.
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