Crypto exchange Bybit has taken a big step by securing a provisional license in Dubai just two years after moving its headquarters there. This license, issued by Dubai’s Virtual Asset Regulatory Authority (VARA), isn’t operational yet but marks a significant milestone for the centralized exchange (CEX).
Bybit Chief Operating Officer Helen Liu emphasized that obtaining this new crypto license is a crucial step in the company’s global growth, aligning with Dubai’s aim of becoming a significant player in the blockchain industry. In an important regulatory move, UAE authorities revealed that virtual asset service providers (VASPs) licensed in Dubai will now work across the entire country.
Dubai supports crypto regulations
Bybit’s provisional license allows it to serve individual and institutional investors in Dubai, but the exchange still aims for a full operational license in the region. Since moving its headquarters to Dubai in 2022, Bybit has strengthened its relationship with the Dubai Multi Commodities Crypto Centre (DMCC), shifting from an ecosystem partner to a key advisor.
According to CoinMarketCap data, Bybit is the second-largest crypto exchange globally in terms of 24-hour trading volume for derivatives. On Sept. 16, it handled more than $15.8 billion in trades, trailing only Binance, which recorded $38.5 billion.
Dubai has been taking major steps to attract Web3 and crypto companies by creating a more crypto-friendly environment. According to reports, the Dubai Court of First Instance has now accepted cryptocurrency salary payments as valid under employment contracts.
In April, Binance finally secured a virtual asset service provider license in Dubai. This came after co-founder Changpeng Zhao stepped back from his voting power in the company’s local branch.
Leading on-chain security firm Chainalysis established its regional headquarters in Dubai on May. 8. Specifically, the company has been working closely with local government officials, providing guidance on how to shape effective regulations that support developments in the crypto industry.
