Cryptocurrency exchange Bybit has obtained a Minimum Viable Product (MVP) preparatory license from Dubai’s Virtual Assets Regulatory Authority (VARA), allowing it to expand its operations in the United Arab Emirates (UAE). Bybit already operates in Dubai but its current licensing restricts it to serving only a limited set of accredited investors. The company’s CEO, Ben Zhou, expressed optimism about their progress towards acquiring a full market product (FMP) license in Dubai, which would enable them to serve a wider range of customers.
Zhou praised VARA for its interest and passion for innovation and entrepreneurship, noting that the authority actively seeks feedback from entrepreneurs. Bybit’s goal is to become fully licensed in Dubai, enabling it to run a full-scope virtual assets exchange and offer a comprehensive range of services, including advisory, broker-dealer, custody and exchange services, lending and borrowing, payments and remittances services, as well as investment services.
Dubai’s business-friendly environment and the UAE’s commitment to regulatory clarity and investor protection make it an ideal location for Bybit, according to Zhou. He believes that the Emirates’ future-ready mindset attracts investors and funds seeking opportunities in the digital economy, making it an attractive destination for foreign direct investment. Bybit recently opened new headquarters in Dubai in April 2023, and earlier received VARA’s in-principle approval in April 2022.
In addition to expanding its operations in Dubai, Bybit has been actively seeking regulatory approvals in other jurisdictions. The company recently obtained a license to operate as an exchange and custody service in Cyprus, allowing it to facilitate trading between cryptocurrency and fiat currency pairs. Bybit also received pre-approval in Kazakhstan to operate as a digital asset trading facility and custody services provider at the Astana International Financial Centre.
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Zhou acknowledges that some jurisdictions are more welcoming than others, citing the examples of Kazakhstan and Cyprus granting them full operational licenses. Bybit is closely monitoring developments in key jurisdictions such as the United Kingdom, Hong Kong, and the European Union, as they continue to expand their global reach.
The cryptocurrency industry has been experiencing rapid growth and increased regulatory scrutiny globally. Bybit’s efforts to comply with regulations and obtain the necessary licenses highlight their commitment to operating within the legal framework while offering their services to customers in different countries. These strategic moves not only benefit Bybit but also contribute to the overall growth and development of the cryptocurrency market.
As the industry continues to evolve, regulatory clarity and investor protection remain crucial for its long-term sustainability. Bybit’s focus on securing licenses and complying with regulations demonstrates their commitment to building a trustworthy and reliable platform for cryptocurrency trading and investment.
In conclusion, Bybit’s acquisition of the MVP preparatory license in Dubai is a significant step towards expanding its operations in the UAE. The company’s aim is to obtain a full market product license, allowing it to serve a broader range of customers. Bybit’s proactive approach to regulatory compliance reflects its commitment to providing a secure and compliant platform for cryptocurrency trading. With its recent licensing achievements in Cyprus and Kazakhstan, Bybit is poised to further strengthen its global presence in the cryptocurrency market.
