Bybit Achieves VASP License in Dubai
The cryptocurrency exchange Bybit has recently achieved a significant milestone by receiving a Virtual Asset Service Provider (VASP) license specifically for spot trading from Dubai’s Virtual Assets Regulatory Authority (VARA). This development allows Bybit Fintech FZE, the exchange’s local entity, to enhance its regulatory footprint in the United Arab Emirates, where it originally set up its international headquarters in 2022.
Details of the License
On October 21, Bybit announced this authorization, which applies to Exchange Services. However, it is important to note that this licensing does not automatically extend to all financial products available through Bybit’s global platform.
According to VARA’s public licensing register, Bybit Fintech FZE is categorized as an active VASP under reference number VL/26/10/003, allowing the company to serve retail, qualified, and institutional investors. While the license has a recorded issue date of June 20, 2026, Bybit communicated the approval in an announcement made on October 22. The precise significance of the discrepancy between these dates was not clarified in either notification.
Previous Approvals and Future Plans
Prior to securing this latest license, Bybit obtained a provisional approval from VARA in 2024, which paved the way for completing necessary requirements for a full operational license. Additionally, the exchange received full regulatory endorsement from the UAE’s Securities and Commodities Authority in October 2025 under a distinct regulatory process, as VARA only pertains to virtual asset activities in Dubai, excluding those in the Dubai International Financial Centre that follows independent financial regulations.
Ben Zhou, Bybit’s co-founder and CEO, emphasized the importance of Dubai in the company’s strategic operations. In his statement, he lauded the emirate’s advancements in digital asset regulation and reaffirmed Bybit’s commitment to work closely with local authorities. Through his post on social media platform X, Zhou reiterated the critical role that Dubai plays in Bybit’s journey, stating:
“Securing our VARA license is another step in building for the long term, with trust, compliance, and local commitment at our core.”
Current Operations and Future Ambitions
Currently, Bybit’s international platform serves over 80 million users, although it remains unclear how many of those will use services via the Dubai-licensed entity. Since establishing its presence in the region, Bybit has actively engaged in local blockchain initiatives and partnerships.
Even though the approved license is limited to spot trading, Bybit has expressed its ambitions to expand into derivatives, which are a vital component of its global offerings. Peter Loo, the exchange’s chief legal and compliance officer, indicated that the company is hopeful to introduce derivatives products in Dubai once they secure the requisite approvals. However, the regulations governing derivatives trading in Dubai are particularly stringent, with requirements concerning client eligibility, risk management, and financial safeguards, meaning that the current spot services license does not automatically confer the right to offer leverage and futures trading.
Industry Context
In a broader context, Bybit’s expansion in Dubai coincides with a growing trend of licensing activities in the region. Other companies, such as Kraken’s parent company Payward and Flowdesk, have also recently received regulatory approvals for varying services under VARA’s frameworks. Bybit reiterated its ongoing commitment to compliance, security, and enhanced risk management across its international operations, showcasing a strong focus on user protection and future regulatory discussions for derivatives services.
