Bybit Fintech FZE, the Dubai entity of cryptocurrency exchange Bybit, has secured a Virtual Asset Service Provider (VASP) license from Dubai's Virtual Assets Regulatory Authority (VARA) authorizing spot trading of digital assets. The exchange announced the approval on October 22, but the authorization excludes cryptocurrency derivatives, a central part of the company's global business. The distinction limits which products Bybit can offer locally despite its broader international trading operations.

Bybit confirmed the license in a statement released on Thursday. The approval allows the company's Dubai unit to offer spot trading, in which customers buy and sell digital assets directly rather than trade contracts tied to their prices. It covers retail, qualified, and institutional investors.

VARA oversees virtual asset businesses operating across Dubai's mainland and free zones, apart from the Dubai International Financial Center. Established in 2022 as the emirate's dedicated virtual asset regulator, the authority sets the licensing terms that determine which firms can operate there and which products they may offer. Bybit established its international headquarters in the emirate in 2022 and currently reports more than 80 million users worldwide across its trading and other financial services. The company said the approval supports its plans to build local operations under Dubai's regulatory framework.

Co-founder and CEO Ben Zhou said Bybit would continue working with the emirate's digital asset industry and follow VARA's requirements.

Derivatives Trading Requires Further Approval

Bybit's Dubai permission does not cover derivatives, even though the exchange offers these products in other markets. Derivatives let traders take positions through contracts linked to an underlying asset's value, and regulators treat them differently from direct spot purchases and sales.

Peter Loo, Bybit's chief legal and compliance officer, said the company wants to extend its licensed activities to derivatives in the future. He described derivatives as a major part of Bybit's global trading business but acknowledged that any expansion in Dubai would require regulatory approval. Bybit gave no target date for a derivatives application or potential launch, and the announcement did not say whether the company had submitted a separate request to VARA. Until VARA clears such an expansion, Bybit's Dubai customers are limited to the spot services covered by the current license.

VARA Register Lists Bybit as an Active Licensee

VARA's public register identifies Bybit Fintech FZE as an active VASP under reference VL/26/10/003. The entry names Exchange Services as the authorized activity and permits the company to serve retail, qualified, and institutional investors. The current listing therefore shows an active license, rather than the pending status cited in an earlier report.

The register records June 20, 2026, the license issue date, although Bybit publicly announced its approval on October 22. Neither the company's statement nor the register explains the difference between those dates.

Bybit previously received in-principle approval for Exchange Services on August 21, 2024. That preliminary step allowed the company to complete the remaining formal application requirements. VARA does not permit firms to serve clients solely on an in-principle basis.

Dubai Approvals Continue Across Crypto Exchanges

Other trading platforms have also announced Dubai regulatory approvals in recent months. On October 12, Kraken's parent company, Payward, said VARA had granted full market approval ahead of its planned UAE launch. Kraken outlined spot and margin services for launch, while placing derivatives among products requiring further separate regulatory clearance.

Coinbase-owned Deribit also obtained a Dubai broker-dealer license in August. The permission supports a spot order-routing arrangement through Coinbase Exchange.

Taken together, the recent approvals show licensing scope shaping what each platform can actually offer in Dubai, with derivatives requiring separate clearance in both the Bybit and Kr cases.

Beyond Dubai, Bybit reported five new licenses and regulatory approvals during 2026 across the European Union, the Cayman Islands, Indonesia, South Africa, and El Salvador. The company said it continues to invest in compliance, security, and risk management across those markets. For readers tracking Bybit's Dubai rollout, the open items are whether the exchange files a derivatives application with VARA and whether the company or the regulator explains the gap between the register's June issue date and the October announcement.

This article is for informational purposes only and does not constitute legal or financial advice. Cryptocurrency trading carries market, custody, and regulatory risks. Readers should conduct independent research before making financial decisions.

This article first appeared on The Market Periodical.