The UAE’s approval enables ByBit to expand its workforce and boost crypto initiatives.
The approval strengthens UAE’s position as a regulated hub for digital assets and crypto firms
Photo Credit: Unsplash/Kanchanara
Cryptocurrency exchange ByBit has become the first to secure a full virtual asset platform (VASP) operator licence from the Securities and Commodities Authority (SCA) of the UAE. The licence follows an in-principle approval granted in February. It permits ByBit to go beyond Dubai's Virtual Assets Regulatory Authority (VARA) framework and provide regulated trading, brokerage, custody, and fiat conversion services to retail and institutional clients throughout the UAE mainland. This milestone marks a key expansion in ByBit's global regulatory roadmap.
The full Virtual Asset Platform Operator Licence allows ByBit to provide the complete suite of its global products and services to clients in the UAE. The approval comes months after the exchange received in-principle clearance in February and indicates the regulator's confidence in ByBit's operational and compliance standards.
In February, ByBit was hit by one of the cryptocurrency industry's largest-ever hacks, when attackers linked to North Korea's Lazarus Group stole more than $1.4 billion (roughly Rs. 12,412 crore) worth of Ether. The platform has since reopened for business worldwide and strengthened its cybersecurity infrastructure.
Last month, ByBit also restarted full operations in India after registering with the Financial Intelligence Unit-India (FIU-IND) under the Prevention of Money Laundering Act (PMLA). The exchange was registered in India in February after briefly suspending its service. ByBit paid a $1 million (roughly Rs. 8 crore) fine over compliance violations before resuming operations.
The exchange's app has returned for Indian users on both iOS and Android, with website access rolling out in phases. As per ByBit, its services in India will operate in accordance with the current compliance framework, which includes anti-money laundering and KYC regulations.
ByBit co-founder and CEO Ben Zhou said, “The UAE has emerged as a global leader in digital asset regulation, and this recognition underscores the strength of our security and governance standards.” ByBit Co-CEO Helen Liu added that the SCA's clear and well-structured framework enables exchanges to operate, “with confidence and clarity.”
After facing numerous challenges earlier this year, the licence, which was awarded after months of review, indicates that regulators are becoming more confident in ByBit's operational and security controls.
As the UAE strengthens its oversight of virtual assets, ByBit's SCA licence adds to the country's growing reputation as a regulated hub for digital finance. Recently, authorities also fined 19 crypto firms for unlicensed operations, reflecting the nation's stricter approach towards compliance and market transparency.
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