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First in UAE – Bybit Snags SCA License, Unlocking Regulated Trading and Custody

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Bybit has secured a Virtual Asset Platform Operator License from the UAE’s Securities and Commodities Authority, turning into the primary crypto change to acquire full regulatory approval from the SCA.

The world’s second-largest cryptocurrency change by buying and selling quantity introduced the milestone on Thursday, marking a serious growth of its operations throughout the UAE mainland.

“The UAE has emerged as a worldwide chief in digital asset regulation, and this recognition underscores the power of our safety and governance requirements,” mentioned Ben Zhou, co-founder and CEO of Bybit, in an official statement.

Under the SCA framework, Bybit will supply regulated digital asset buying and selling, brokerage, custody, and fiat conversion companies to each retail and institutional shoppers all through the nation.

SCA License Expands Bybit’s Reach Beyond Dubai’s VARA Framework

The SCA’s regulatory scope extends past Dubai’s Virtual Assets Regulatory Authority (VARA) framework, making use of to entities working throughout the UAE mainland outdoors VARA’s jurisdiction.

Bybit additionally holds a provisional license beneath the VARA framework, giving the change twin regulatory protection throughout completely different UAE jurisdictions.

The firm initially received its In-Principle Approval from the SCA in February 2025, working with the Blockchain Centre Abu Dhabi to fulfill the regulatory necessities.

“Receiving the complete Virtual Asset Platform Operator License from the SCA is a testomony to Bybit’s unwavering dedication to constructing belief by compliance and transparency,” mentioned Bybit CEO Ben Zhou in a press release.

This approval got here simply days earlier than Bybit suffered a $1.4 billion hack on February 21, one of many largest crypto safety breaches in historical past, which occurred throughout a switch between the change’s chilly and sizzling wallets.

Despite the safety incident, Bybit has continued to push ahead with its international growth plans, securing regulatory approvals throughout a number of jurisdictions in latest months.

In September, the change resumed full trading operations in India after registering with the Financial Intelligence Unit-India and paying a $1.06 million penalty for earlier violations of the Prevention of Money Laundering Act.

Earlier this yr, Bybit additionally secured a Markets in Crypto Assets license from Austria’s Financial Market Authority, unlocking entry to 29 European Economic Area nations and establishing its European headquarters in Vienna.

UAE Solidifies Position as Premier Crypto Jurisdiction Amid Global Competition

The UAE has positioned itself as a number one vacation spot for crypto companies looking for regulatory readability, rating first in the 2025 international crypto adoption index after 210% development.

Dubai’s VARA not too long ago sanctioned 19 unlicensed crypto firms with fines starting from $27,000 to $163,000 for working with out correct authorization, demonstrating the regulator’s dedication to enforcement.

Major exchanges, together with Crypto.com, Deribit, and HashKey Group, have obtained licenses from VARA to function in Dubai, whereas HashKey not too long ago launched HashKey Global MENA to serve institutional and high-net-worth shoppers.

Meanwhile, a state-backed Abu Dhabi funding agency not too long ago committed $2 billion to Binance by way of the USD1 stablecoin developed by World Liberty Financial with ties to the Trump household.

The Abu Dhabi Global Market unveiled separate rules in 2023 for blockchain foundations and decentralized autonomous organizations working inside its worldwide free-trade zone.

Industry executives view the UAE’s a number of regulatory pathways as each a possibility and a supply of complexity, requiring exchanges to handle overlapping jurisdictions whereas sustaining compliance throughout completely different authorities.

Given the bettering regulatory atmosphere in comparison with different areas, Tether has introduced plans to launch a dirham-pegged stablecoin in the area, whereas quite a few enterprise capital funds and blockchain companies proceed to ascertain operations throughout the Emirates.

However, rules stay fragmented, with completely different frameworks governing Dubai’s free zones versus the broader UAE mainland beneath SCA oversight.

Pakistan has equally opened its doors to international crypto exchanges by inviting them to use for licenses beneath its newly fashioned Pakistan Virtual Assets Regulatory Authority, requiring candidates to already maintain licenses from high international regulators.

Bybit’s SCA license will place the change to capitalize on the UAE’s rising digital asset economic system, which obtained over $30 billion in crypto transactions between July 2023 and June 2024.

The publish First in UAE – Bybit Snags SCA License, Unlocking Regulated Trading and Custody appeared first on Cryptonews.

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