Bybit Secures- Bybit Gains Provisional License in Dubai as City Becomes Crypto Hotspot
Bybit Secures– On September 16, 2024, Bybit, the world’s second-largest cryptocurrency exchange by derivatives volume, announced it has obtained a provisional license in Dubai. This milestone comes two years after the exchange established its headquarters in the city.
Bybit’s New License and Its Significance
Bybit has received a non-operational license from the Virtual Asset Regulatory Authority (VARA). Helen Liu, Bybit’s Chief Operating Officer, described this new license as a major achievement in the company’s global expansion strategy. Liu emphasized that Dubai’s strategic location, progressive policies, and innovation-driven environment present unparalleled opportunities for businesses and investors in the cryptocurrency sector.
Dubai is increasingly becoming a global hub for cryptocurrency and blockchain innovation, attracting a growing number of crypto companies due to its crypto-friendly regulations. Recent regulatory changes underscore Dubai’s commitment to becoming a leading blockchain hub.
On September 9, UAE regulators announced that virtual asset service providers (VASPs) licensed in Dubai will be permitted to operate throughout the entire country. This regulatory shift marks a significant development for the region’s virtual asset landscape.
Bybit’s Path to Full Operational License
While the provisional license allows Bybit to serve both retail and institutional investors in Dubai, the exchange is actively pursuing a full operational license. Bybit relocated its headquarters to Dubai in 2022 and has recently renewed its partnership with the Dubai Multi Commodities Crypto Centre (DMCC), transitioning from an ecosystem partner to a key advisory role.
As of September 16, Bybit holds the position of the second-largest crypto exchange globally by 24-hour derivatives volume, with over $15.8 billion in derivatives traded, trailing only behind Binance, which has a volume of $38.5 billion.
Dubai’s Regulatory Advances in the Crypto Sector
Dubai has made significant strides in regulatory advancements to attract more Web3 and crypto firms. Notably, on August 16, Cointelegraph reported that the Dubai Court of First Instance recognized salary payments in cryptocurrency as valid under employment contracts. This development highlights Dubai’s forward-thinking approach to integrating cryptocurrency into everyday business practices.
Additionally, on June 5, the Central Bank of the UAE approved a new stablecoin licensing and monitoring system. Earlier this year, in April, Binance, the world’s largest crypto exchange by volume, received its long-awaited virtual asset service provider license in Dubai. This came after Binance’s co-founder, Changpeng Zhao, relinquished his voting power in the exchange’s local entity.
Chainalysis Expands to Dubai
In another sign of Dubai’s growing prominence in the crypto space, leading on-chain security firm Chainalysis set up its regional headquarters in Dubai on May 8. The firm has been actively engaging with local government stakeholders to provide advice on best practices for regulatory development in the crypto industry.
Dubai’s regulatory environment continues to evolve, reinforcing its position as a major player in the global cryptocurrency and blockchain sectors.
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