Key Highlights
- Bybit secured a crucial Virtual Asset Platform Operator License from the Securities and Commodities Authority (SCA) of the UAE
- The license will open the door for Bybit to expand its operations in the country
- Lately, the UAE has become a hotbed for crypto innovations to expand offerings under a friendly regulatory environment
On October 9, Bybit, the second biggest cryptocurrency exchange in the world, officially announced that it has secured the Virtual Asset Platform Operator License from the Securities and Commodities Authority (SCA) of the United Arab Emirates (UAE).
The license will allow Bybit to expand its offerings of “regulated virtual asset”, including trading, brokerage, custody, and fiat conversion services. It will serve both retail and institutional clients across the UAE.
Bybit Wins Major Regulatory Approval in the UAE
After securing this license, Bybit added another feather in its hat and became the first crypto exchange to obtain this full license from the SCA.
This achievement comes after the crypto exchange received its In-Principle Approval (IPA) from the SCA back in February 2025. To get this compliance, it took the help of the Blockchain Centre, Abu Dhabi.
In 2025, Bybit directed its resources to achieve compliance in the different regions of the world. In May, Bybit received a Markets in Crypto-Assets (MiCA) license from Austria’s Financial Market Authority (FMA), which allows the cryptocurrency exchange to freely run its operations across the European Economic Area (EEA) as a Crypto-Asset Service Provider (CASP).
Similarly, the cryptocurrency exchange has re-entered the most populated country, India, after complying with the Financial Intelligence Unit (FIU-IND).
Ben Zhou, Co-founder and CEO of Bybit, stated in a press release, “Receiving the full Virtual Asset Platform Operator License from the SCA is a testament to Bybit’s unwavering commitment to building trust through compliance and transparency. The UAE has emerged as a global leader in digital asset regulation, and this recognition underscores the strength of our security and governance standards.
“At Bybit, we see regulation as the foundation for sustainable growth. This milestone marks another step forward in our global regulatory roadmap — from MiCAR in Europe to India and now the UAE — as we continue to set new benchmarks for a secure and responsible digital asset ecosystem,” he added further.
Helen Liu, Co-CEO of Bybit, also made a statement on this development, saying that “We sincerely thank the Securities and Commodities Authority for their trust and support throughout the licensing process. The SCA’s clear, robust, and well-structured regulatory framework provides a strong foundation for global exchanges like Bybit to operate with confidence and clarity.
“This achievement would not have been possible without the SCA’s forward-thinking approach to fostering innovation and compliance in the digital asset space. We look forward to deepening our collaboration as we bring more resources, products, and expertise to the UAE market,” he said.
UAE Welcomes Crypto Innovations with Regulatory Compliance
In recent years, the cryptocurrency market has grown dramatically, currently holding over $4 trillion in market capitalization, according to CoinMarketCap. To attract innovations and ensure investors’ safety, the UAE has implemented strict compliance measures.
Crypto trading in the UAE is almost tax-free. The country offers many tax benefits to crypto traders. There is no personal income tax or capital gains tax on crypto activities, and transactions are exempt from VAT.
This tax-friendly environment is a big advantage for investors, and this is why the country is expected to attract 9,800 millionaire migrants in 2025.
Not just this, the country has also specialized free zones like Dubai’s DMCC Crypto Centre and Abu Dhabi’s ADGM. This region creates a safe harbor for the digital asset industry.
The UAE has a multi-layered regulatory framework. In Dubai, the Virtual Assets Regulatory Authority (VARA) licenses virtual assets service providers (VASPs) for operations like exchanges and issues new tokens.
Similarly, Abu Dhabi’s FSRA allows crypto innovations to test DeFi and tokenized assets.
Recently, Abu Dhabi’s MGX has signed one of the biggest cryptocurrency deals by investing $2 billion in Binance in March 2025. At the same time, Ripple secured a DIFC license to expand its blockchain payments with XRP tokens.
