Crypto Exchange Bybit Obtains Provisional Approval From Dubai’s Regulator VARA

Journalist

Tanzeel Akhtar

Journalist

Tanzeel Akhtar

About Author

Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk and Bitcoin Magazine.

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Last updated:

September 16, 2024 06:00 EDT

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Cryptocurrency exchange Bybit said it has taken a step toward strengthening its presence in Dubai by securing provisional approval from the Virtual Assets Regulatory Authority (VARA).

The exchange stressed this is “non-operational” approval but allows Bybit to move closer to obtaining a full Virtual Asset Service Provider (VASP) license. This will allow the company to offer virtual asset exchange services to retail, institutional, and qualified investors in Dubai.

Why Dubai?

Dubai has emerged as an important location for cryptocurrency and blockchain firms due to its policies, regulatory clarity, and strategic positioning.

Bybit, which established its global headquarters in Dubai in 2022, has been an active participant in the city’s growing crypto ecosystem.

“Dubai’s strategic location, progressive policies, and innovation-driven environment offer unparalleled opportunities for businesses and investors in the cryptocurrency sector,” said Helen Liu, chief operating officer of Bybit.

“With its robust regulatory framework and commitment to becoming a blockchain capital, Dubai is the ideal place to advance digital currencies and foster growth in this exciting industry,” adds Liu.

The provisional approval from VARA shows Bybit is complying with Dubai’s rigorous regulatory standards and working closely with local authorities.

At a recent panel discussion during Korea Blockchain Week (KBW2024) Binance CEO Richard Teng praised Dubai and its regulatory framework for digital assets.

Commenting on the Middle East, Teng pointed to innovative regulatory approaches in countries like Abu Dhabi, Bahrain, and Dubai. He praised Dubai’s establishment of VARA which is dedicated solely to overseeing the crypto industry.

VARA Dedicated to Overseeing Virtual Assets

VARA, established to oversee the regulation of virtual assets in Dubai, has gained recognition for its strict yet progressive regulatory framework.

The licensing process for virtual asset exchanges, including Bybit’s, is thorough and involves close cooperation between the regulator and the applicant.

Bybit said it intends to uphold these high standards, aligning with Dubai’s broader vision of becoming a global leader in blockchain and digital assets.

Bybit Pulls out of France Due to Regulatory Pressure

In August, Bybit announced its departure from France due to recent regulatory actions by the French authorities. The company said that it would no longer offer products and services to French nationals and residents.

From Aug. 2, Bybit restricted French users’ accounts to “close-only” mode, prohibiting the opening of new positions or the addition of any deposits.