Bybit, a global cryptocurrency exchange, has officially received a Virtual Asset Platform Operator License from the Securities and Commodities Authority (SCA) of the United Arab Emirates (UAE).
This license allows Bybit to offer its full range of products and services in the UAE market.
Why is this important for beginners?
- It means that Bybit is now operating under a clear regulatory framework in the UAE, which adds a layer of trust and seriousness to its operations.
- For users in the UAE, it signals that the exchange meets local regulatory standards, which can reduce risks related to operating in an unregulated environment.
- For global users, it shows that Bybit is expanding its regulatory footprint—important if you care about the legitimacy and stability of the platform you use.
What does “regulatory license” mean in this context?
In simple terms:
- A regulatory body (in this case, the UAE’s SCA) gives permission to a company to run certain activities under the law.
- For crypto platforms, this typically means they have to comply with rules around things like customer verification (KYC), anti-money laundering (AML), asset custody, transparency, and consumer protection.
- Getting such a licence signals that the company is willing to be monitored and held accountable.
How did this come about?
- Bybit had received in-principle approval from the regulator eight months earlier.
- The UAE’s crypto regulatory framework is evolving: the SCA works alongside the Virtual Assets Regulatory Authority (VARA) in Dubai to coordinate licensing and regulation of digital-asset businesses.
- Previously, Bybit also secured regulatory approval in other jurisdictions: Austria in May and registration in India earlier in the year.
Why did Bybit pursue licensing in the UAE?
- The UAE is positioning itself as a crypto-friendly hub, attracting global crypto and blockchain businesses.
- From Bybit’s perspective, obtaining the licence helps to boost credibility, trust, and compliance globally. Their CEO, Ben Zhou, said the full licence “demonstrates the company’s commitment to building trust through compliance and transparency.”
- For users in the UAE, it simplifies access to a wider set of services under a licensed provider.
What this means for users and the industry
- For UAE residents: You now have access to Bybit’s full suite of global products in a jurisdiction where the company is licensed.
- For global users: This move signals that Bybit is serious about regulation, which is generally a positive sign for platform safety and risk management.
- For the crypto industry: It underscores a broader trend—regulators around the world are increasingly shaping frameworks for digital-asset businesses. Platforms that comply may gain advantages, while those that don’t may face restrictions.
Things to keep in mind (for beginners)
- Licensing does not mean zero risk. Even licensed platforms are exposed to market risk, hacking risk, regulatory changes, operational failures, etc. Use caution and only invest what you can afford to lose.
- If you are using Bybit (or any crypto exchange) in the UAE or elsewhere, check whether your specific service/location is covered by the licence (regional restrictions may still apply).
- Stay updated on local regulation: what is permitted today might change tomorrow, and fees or terms might differ for users depending on location.
Key take-aways
- Bybit has secured a full operating licence from the UAE’s SCA — a strong signal of regulatory compliance.
- The licence enables a wide range of services for UAE users, and enhances Bybit’s reputation globally.
- For beginners in crypto: choosing platforms with visible regulatory licences can be a helpful part of your platform-selection checklist, though it shouldn’t replace your own research or risk management.
