Leading crypto exchange Bybit has reached a new regulatory milestone in one of its key markets, announcing on October 22 that its Dubai subsidiary, Bybit Fintech FZE, had obtained a full Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA). The approval covers exchange services, including spot trading in crypto.
Derivatives trading falls outside the current scope of the license. Bybit said it intends to pursue an expansion to include derivatives further down the line, pending the necessary regulatory approvals.
For Bybit, the license represents a notable step forward since the company first set up its international headquarters in Dubai in 2022.
Ben Zhou, Bybit’s co-founder and CEO, highlighted the city’s regulatory progress in a statement. “Dubai has made significant progress in building a regulatory environment for virtual assets, and we are pleased to take this next step in our journey here,” he said. “We look forward to continuing our work in Dubai, supporting the local digital asset community and building our business in line with the standards set by VARA.”
Peter Loo, Bybit’s Chief Legal and Compliance Officer, said, “…We also hope to expand our licensed activities to include derivatives, subject to the necessary regulatory approvals. Derivatives are a major part of Bybit’s global trading business, and we want to bring more of our offering to Dubai through the appropriate regulatory process,” he said.
This approval builds on groundwork laid in August 2024, when VARA granted the company provisional approval, allowing it to work toward meeting full licensing requirements before entering regulated operations.
The Dubai license also fits into a broader pattern of regulatory expansion for Bybit throughout 2026. Zhou recently noted that the crypto firm had picked up five new licenses and regulatory approvals this year across the European Union, the Cayman Islands, Indonesia, South Africa and El Salvador.
