Bybit, the world's second-largest crypto exchange by derivatives volume, has secured a provisional license in Dubai two years after setting up its headquarters in the city.
Bybit and the Provisional License
The centralized crypto exchange (CEX) has received a non-operational license from the Virtual Asset Regulatory Authority (VARA). According to Bybit’s Chief Operating Officer Helen Liu, the new license represents a major milestone in the company’s global expansion strategy, driven by Dubai’s ambition to become a leading blockchain hub. CITE_W_A: “Dubai's strategic location, progressive policies, and innovation-driven environment offer unparalleled opportunities for businesses and investors in the cryptocurrency sector,” Liu told Cointelegraph.
Dubai: The New Global Crypto Hub
An increasing number of crypto companies are relocating to Dubai, which is quickly establishing itself as a global hub with crypto-friendly regulations. In a significant regulatory development, UAE regulators will allow Dubai-licensed virtual asset service providers (VASPs) to service the entire country, the Securities and Commodities Authority (SCA) and VARA announced on Sept. 9.
Dubai's Regulatory Achievements
The Dubai Court of First Instance has recognized salary payments in crypto as valid under employment contracts. The Central Bank of the UAE approved the issuance of new stablecoin licensing and monitoring system. In April 2024, Binance, the world's largest crypto exchange by volume, obtained a virtual asset service provider license in Dubai, while leading blockchain security firm Chainalysis set up regional offices in Dubai.
By fostering a favorable environment for cryptocurrency and blockchain companies, Dubai continues to solidify its position as a key global hub for innovation in this sector.
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