In an announcement on Monday, Bybit, a leading crypto exchange in terms of trading volume confirmed it got a provisional approval for Virtual Asset Service Provider (VASP) licence in Dubai.
While the crypto exchange is not fully authorised to operate in Dubai and the UAE yet, this is a significant first step. As the provisional approval is granted, Bybit can secure a full operational approval in the near future.
Amid regulatory uncertainty and stricter AML norms across Europe and the US, a number of crypto brokers and exchanges have set up their base in Dubai. The Emirati government has for long been creating crypto-friendly policies. Bybit established its headquarters in Dubai back in 2022.
Can Bybit Operate In The UAE?
With the provisional approval Bybit has moved closer to getting a full-scale licence following which it can operate in the entire UAE – not just Dubai.
In an important development last week, the UAE Securities and Commodities Authority (SCA), confirmed to have signed an agreement with Dubai’s Virtual Assets Regulatory Authority (VARA).
While the new agreement focuses on broader financial co-operation, the companies dealing in Virtual Asset Services (VASPs), will not have to get separate licence to operate in the UAE.
Typically, for any crypto firm to legally operate in Dubai and the entire UAE, they have had to get two separate licences from SCA and VARA. But now, they can register with VARA and thereafter they will automatically get registered with the SCA.
“VASPs operating in/from Dubai, or wishing to service the emirate of Dubai require to obtain a licence from VARA, and can be registered by default with the SCA to service the wider UAE,” read an announcement made by the UAE’s Securities and Commodities Authority (SCA).
Bybit seems very close to getting a full operational licence. However, it will take about 12 months. Earlier this year, Crypto.com also secured a full operational licence along with Binance. The crypto exchanges and brokers who have a full operational license have had to wait an average of one year after they had secured a provisional approval.
