Bybit announced on October 22 that its Dubai entity, Bybit Fintech FZE, has received a Virtual Asset Service Provider (VASP) license from Dubai's Virtual Assets Regulatory Authority (VARA), authorizing the exchange to offer spot cryptocurrency trading services in the emirate. The full approval, set out in an official announcement, does not extend to derivatives, for which the exchange still requires separate clearance from the regulator.

Spot Approval Secured, Derivatives on Hold

The license permits Bybit to operate regulated spot markets under Dubai's rules. Futures and other derivatives products fall outside its scope and would require additional permission from VARA.

Peter Loo, Bybit's chief legal and compliance officer, said the exchange wants to broaden its permitted services and described derivatives as a major part of the company's global trading business. Bybit already handles derivatives for customers outside Dubai, but those existing services do not allow it to offer the same products within the emirate. Loo said the company would keep working with VARA on wider approval. Until that clearance arrives, there is no licensed local route for Dubai customers to access Bybit's derivatives products, making the regulator's pending decision the key milestone to watch for the exchange's Dubai operations.

An October report on Ethereum derivatives trading listed Bybit among platforms with active futures positions. No launch date for a Dubai derivatives offering has been announced.

License Adds to a Global Licensing Drive

Bybit established its international headquarters in Dubai in 2022. VARA granted the local entity preliminary approval in August 2024, allowing it to complete its remaining operating requirements before securing a full license.

Chief executive Ben Zhou said the firm plans to develop its Dubai business within VARA's standards, citing the company's work with local partners and the digital asset community. Entry into different markets requires local approval, and Zhou pointed to five licenses and regulatory clearances obtained this year across Europe, the Cayman Islands, Indonesia, South Africa, and El Salvador.

Separately, Kazakhstan moved to restrict access to six crypto exchange apps, including Coinbase. Its regulator said it planned to send court orders to app store operators, a counterpoint to the licensing gains crypto firms have announced elsewhere.

Dubai Regulator Maintains Separate Rules

Dubai continues licensing digital asset firms. Payward, Kraken's parent company, recently received full VARA approval, and Kraken plans to introduce new trading pairs priced in UAE dirhams, alongside deposits and withdrawals in the local currency.

The latest licensing developments come as financial regulators scrutinize how exchanges handle customer assets. In a separate case, Coinbase received a €3.25 million fine in Ireland over customer funds and outsourcing controls.

VARA oversees licensed virtual asset businesses across Dubai, except within the Dubai International Financial Centre. Robinhood received separate approval from that district's financial regulator to offer retail investment services.

Source: Blockonomi