The cryptocurrency exchange Bybit has recently announced that it has secured provisional approval from the Virtual Assets Regulatory Authority (VARA) in Dubai, marking a significant step towards expanding its operations in the region. This approval, while non-operational at this stage, positions Bybit to potentially obtain a full Virtual Asset Service Provider (VASP) license in the future. If granted, this license would enable Bybit to provide virtual asset exchange services to retail, institutional, and qualified investors in Dubai.
Why Dubai?
Dubai has become a prominent hub for cryptocurrency and blockchain companies due to its progressive policies, clear regulatory framework, and strategic location. Bybit, which established its global headquarters in Dubai in 2022, has actively engaged in the city's growing crypto ecosystem. Helen Liu, the chief operating officer of Bybit, emphasized Dubai's favorable environment for businesses and investors in the crypto sector. She highlighted the city's robust regulatory structure and dedication to becoming a blockchain capital as key factors driving Bybit's presence in Dubai.
The provisional approval from VARA showcases Bybit's commitment to complying with Dubai's stringent regulatory requirements and working closely with local authorities to ensure adherence to regulatory standards.
During a panel discussion at Korea Blockchain Week (KBW2024), binance CEO Richard Teng lauded Dubai's regulatory framework for digital assets and commended the innovative approaches taken by countries in the Middle East, including Abu Dhabi, Bahrain, and Dubai. Teng specifically praised Dubai's establishment of VARA as a dedicated regulatory authority overseeing the crypto industry.
VARA Dedicated to Overseeing Virtual Assets
VARA's establishment to regulate virtual assets in Dubai has garnered recognition for its strict yet forward-thinking regulatory framework. The licensing process for virtual asset exchanges, such as Bybit, involves thorough assessment and collaboration between the regulator and the applicant. Bybit has expressed its commitment to upholding these high standards in alignment with Dubai's vision of becoming a global leader in blockchain and digital assets.
Bybit Pulls out of France Due to Regulatory Pressure
In a separate development, Bybit announced its decision to exit the French market in response to regulatory actions by the French authorities. The company stated that it would cease offering products and services to French nationals and residents. Effective August 2, Bybit restricted accounts of French users to "close-only" mode, prohibiting the opening of new positions or the addition of deposits.
