Crypto exchange Bybit just scored a big win, nabbing in-principle approval from the UAE’s Securities & Commodities Authority (SCA) to set up shop as a Virtual Asset Platform Operator. The nod, dated February 18 and announced on February 28, puts Bybit on the fast track to a full license, letting it offer digital asset services to both everyday traders and big institutional players across the UAE. It’s a major step for the exchange, even as it reels from a $1.5 billion hack that hit its multisig cold wallet just days later.
That hack’s still a hot topic. Dubai’s Virtual Assets Regulatory Authority (VARA) told Khaleej Times on Saturday that it’s keeping a close eye on the “highly evolving matter” until things settle down. Bybit’s not letting it slow their roll, though—this UAE milestone builds on their growing Middle East creds and joins a string of regulatory wins in places like India, Georgia, Kazakhstan, and Turkey as they push to go global.
The UAE’s crypto scene is buzzing, and it’s no wonder why. With a regulatory setup that’s both forward-thinking and protective, the country’s cementing its spot as a blockchain hotspot. Bybit’s not alone in the game—on February 24, the Dubai Financial Services Authority gave Circle’s USD Coin and EURC the green light as the first officially recognized stablecoins under Dubai’s new rules. And back in April 2024, Crypto.com’s local arm, CRO DAX Middle East FZE, landed full approval from VARA, rolling out spot trading and staking services for both retail and institutional clients.
VARA’s not done shaking things up, either. They’re gearing up to roll out rules forcing crypto outfits to spill the beans on “whales”—those big holders who might sway a coin’s fate—along with tougher risk disclosures to make sure investors know what they’re getting into. For Bybit, snagging this approval amid a rocky patch shows they’re playing the long game, betting on the UAE’s crypto boom to keep their momentum alive.
