In a significant development for the cryptocurrency sector, Bybit, one of the world’s leading crypto exchanges, has obtained a preliminary license from Dubai’s Virtual Asset Regulatory Authority (VARA), marking an essential step towards a full VASP license in the region.
Strengthening Presence in Dubai
The provisional license, announced on Monday, is part of a series of regulatory approvals that Bybit has pursued to cement its standing in a jurisdiction rapidly becoming a central hub for blockchain and cryptocurrency enterprises. Last year, Bybit was also granted a Minimum Viable Product (MVP) license, setting the stage for its full-scale operation pending comprehensive regulatory compliance. Dubai has made concerted efforts to attract cryptocurrency firms by establishing a clear and progressive regulatory framework. Initiated in 2021, VARA was created under the Dubai Virtual Asset Regulation Law, which positioned Dubai as a pivotal player on the global crypto stage. This regulatory framework has proven effective, attracting major crypto brands like Binance, Crypto.com, and Blockchain.com, all of which have secured operating licenses in Dubai.
A Prominent Crypto Exchange
According to data from Coinmarketcap.com, Bybit has processed over $3.8 billion in crypto trading volume in the last 24 hours alone, while its derivatives volume has exceeded $16.2 billion, surpassed only by Binance. A report released by Kaiko highlights that Bybit’s market share jumped from 8% in October 2023 to 16% in June 2024, demonstrating the highest growth rate among top exchanges. In contrast, Coinbase’s market share increased by merely one percentage point during the same period, from 7% to 8%.
Conclusion
The evolving landscape of the cryptocurrency market continues to reflect dynamic shifts, with Bybit making significant strides in its operational and regulatory achievements within Dubai’s supportive and forward-thinking environment.
Securing a preliminary crypto license in Dubai marks an important milestone for Bybit, strengthening its position on the global crypto stage.
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