After obtaining full licensing in Dubai, Bybit intends to operate a comprehensive exchange with crypto lending, payment solutions, investment opportunities, and more.
Bybit, a cryptocurrency exchange based in Dubai, is currently unable to serve all customers due to limitations imposed by its existing licensing, as stated by the CEO. However, there is progress in this regard as Bybit FinTech FZE, a subsidiary of the global exchange, recently obtained the Minimum Viable Product (MVP) preparatory license from Dubai’s Virtual Assets Regulatory Authority (VARA) on June 27. This development signifies a step forward for Bybit as it works towards expanding its services and complying with regulations in Dubai.
Bybit’s CEO, Ben Zhou, expressed the company’s efforts to obtain a full market product (FMP) license in Dubai, which would enable the exchange to cater to a wide range of customers in the United Arab Emirates. While Bybit already operates in Dubai, its current MVP license restricts services to a limited group of accredited investors.
Zhou expressed optimism about the progress made, noting that Dubai’s Virtual Assets Regulatory Authority (VARA) has shown interest and enthusiasm for innovation and entrepreneurship. VARA has actively sought feedback from entrepreneurs, contributing to Bybit’s positive outlook on the licensing process.
Bybit’s CEO revealed that upon obtaining full licensing in Dubai, the company intends to operate a comprehensive virtual assets exchange, offering a wide range of services permitted within the license. These services, according to official data from Dubai’s Virtual Assets Regulatory Authority (VARA), include advisory, broker-dealer, custody and exchange services, lending and borrowing, payments and remittances services, as well as investment services. Bybit’s plan is to provide a full-scope platform to cater to various virtual asset needs once it secures the necessary license in Dubai.
Zhou emphasized that Dubai provides an equitable business environment for companies across industries and sizes. He highlighted the UAE and Dubai’s commitment to regulatory clarity and investor protection, which has been instrumental in attracting investors and funds interested in the digital economy.
Zhou stated that Bybit considers Dubai the ideal location due to its future-ready approach, and the “test-adapt-scale” virtual assets market model offers an appealing opportunity for foreign direct investment.
Bybit’s recent regulatory progress follows the establishment of its new headquarters in Dubai in April 2023. The company had previously obtained in principle approval from VARA (Virtual Assets Regulatory Authority) in April 2022. These developments reflect Bybit’s ongoing efforts to solidify its presence in Dubai and comply with regulatory requirements in the region.
Bybit’s continuous global expansion is evident as it actively engages with regulators. Recently, on June 26, Bybit announced its acquisition of a license in Cyprus, enabling the exchange to offer trading between cryptocurrency and fiat currency pairs while also providing custody services.
Additionally, in May, Bybit received pre-approval in Kazakhstan to operate as a digital asset trading facility and custody services provider at the Astana International Financial Centre. These developments highlight Bybit’s commitment to expanding its presence and services in different regions around the world.
Zhou mentioned that certain jurisdictions are more receptive to Bybit than others. Notably, Kazakhstan and Cyprus have recently granted full operational licenses to Bybit. This indicates that these countries have shown a more welcoming approach towards Bybit’s operations.
Bybit is closely monitoring developments in important jurisdictions such as the United Kingdom, Hong Kong, and the European Union, as stated by the CEO. This suggests that Bybit is actively observing regulatory updates and changes in these regions to assess potential opportunities and challenges for its operations.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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