Cryptocurrency platform Bybit has received in-principle approval from the Securities and Commodities Authority (SCA) of the UAE, marking an important step towards obtaining a fully operational license.
In-Principle Approval from SCA
On February 28th, Bybit announced it received an in-principle approval from the SCA to establish its virtual asset platform in the UAE. This decision strengthens Bybit’s intentions to become a fully licensed provider of digital asset services for both individual and institutional clients in the region. The approval also bolsters Bybit's global regulatory efforts, as the company expands into key markets such as India, Georgia, Kazakhstan, and Turkey.
Response to Recent Incident
Despite a recent hacking incident affecting Bybit’s multisig cold wallet, resulting in a loss of $1.5 billion, the company continues to solidify its market presence in the UAE. VARA stated that the incident is "a highly evolving matter that we will continue to closely track until it stabilizes."
Regulatory Environment in UAE
The UAE is increasingly establishing itself as a global hub for crypto and blockchain innovation, driven by progressive regulatory frameworks that balance growth with investor protection. Beyond Bybit, other platforms like USDC and EURC have received recognition as the first officially approved stablecoins under Dubai's new token regime. Additionally, VARA is set to introduce new rules requiring crypto businesses to disclose the identities of crypto whales to enhance market transparency.
Bybit's in-principle approval to operate in the UAE reflects regulatory trust in its operations despite recent challenges. The accelerated growth of the UAE’s crypto ecosystem highlights the country’s ambition to become a leading hub for technological and blockchain innovation.
