Bybit Secures Full Dubai Regulatory Approval for Spot Cryptocurrency Markets

Key Points

Table of Contents

Bybit obtained complete VASP authorization from Dubai’s regulatory authority for spot cryptocurrency markets.
Derivatives trading requires additional approval from VARA before the exchange can offer futures products.
The platform announced five other regulatory milestones and licenses across global jurisdictions in 2026.
Dubai’s regulatory framework continues welcoming digital asset operators, including recent approval for Kraken’s parent entity Payward.

On October 22, Bybit revealed that its Dubai-based entity, Bybit Fintech FZE, obtained Virtual Asset Service Provider (VASP) license for spot trading authorization. The Virtual Assets Regulatory Authority (VARA) of Dubai has yet to grant permission for derivatives products.

Exchange Targets Derivatives Authorization Following Spot Market Approval

The complete licensing enables the platform to conduct regulated spot cryptocurrency operations within Dubai’s regulatory framework. Futures contracts and other derivatives products remain outside the current authorization scope and demand distinct regulatory clearance.

Peter Loo, serving as chief legal and compliance officer, stated the exchange intends to broaden its authorized offerings. He characterized derivatives as a significant component of the platform’s worldwide trading operations.

The exchange currently provides derivatives services to clients beyond Dubai’s jurisdiction. These international offerings do not grant permission to deliver identical products to emirate residents.

Loo indicated the organization would maintain ongoing collaboration with VARA regarding expanded authorization. An October report on Ethereum derivatives trading included Bybit among exchanges with substantial futures positions. The platform has yet to announce a specific launch timeline for Dubai derivatives.

Global Licensing Strategy Expands with Dubai Authorization

Bybit set up its international operations center in Dubai during 2022. The regulatory body provided preliminary authorization to its local subsidiary in August 2024, permitting the entity to fulfill outstanding operational criteria before obtaining complete licensing.

Ben Zhou, the firm’s chief executive, explained the organization intends to grow its Dubai operations according to VARA’s regulatory requirements. He referenced the company’s collaboration with regional partners and the broader digital asset sector.

In related developments, Kazakhstan moved to restrict access to six crypto exchange apps, including Coinbase. The country’s regulatory body indicated plans to submit court directives to application store operators.

Bybit’s market expansion strategy depends on jurisdiction-specific authorization. Zhou highlighted five licenses and regulatory approvals spanning Europe, the Cayman Islands, Indonesia, South Africa, and El Salvador during the current year.

VARA Continues Independent Regulatory Framework

Payward, the parent organization of Kraken, recently obtained comprehensive VARA authorization. Kraken intends to launch additional trading pairs denominated in UAE dirhams, complemented by deposit and withdrawal capabilities in the national currency.

These licensing milestones emerge as financial authorities worldwide examine exchange custody practices for client assets. In parallel developments within Ireland, Coinbase received a €3.25 million fine over customer funds and outsourcing oversight procedures.

VARA administers licensed virtual asset enterprises throughout Dubai, excluding the Dubai International Financial Centre. Robinhood obtained distinct authorization from that district’s financial authority to provide retail investment products.

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