Bybit Gains UAE Approval For Virtual Asset Platform

Cryptocurrency exchange Bybit has received In-Principle Approval (IPA) from the Securities & Commodities Authority (SCA) of the United Arab Emirates to establish a Virtual Asset Platform in the country.

The approval, granted on February 18, 2025, positions Bybit to soon offer licensed crypto trading services in one of the world’s fastest-growing digital asset hubs.

Bybit officials confirmed they are now completing the final regulatory requirements to secure full operational status in the near future.

Bybit Seeks Regulatory Compliance Amid UAE’s Crypto Expansion

This approval allows the exchange to move forward with plans to offer virtual asset services to both retail and institutional clients within the UAE’s growing digital economy.

Ben Zhou, Co-founder and CEO of Bybit, highlighted the importance of this regulatory milestone, stating:

“We are honored to have received the IPA from SCA. This approval marks a crucial step in our journey to providing secure and transparent crypto trading solutions.”

The UAE has actively positioned itself as a global center for cryptocurrency and blockchain adoption through its progressive regulatory approach.

Bybit’s focus on compliance includes adherence to Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) protocols.

Bybit’s progress in the UAE comes amid a broader push for regulatory clearance across multiple jurisdictions.

The exchange has recently secured approvals in countries including India, Georgia, Kazakhstan, and Turkey as part of its global compliance strategy.

In India, Bybit successfully registered with the Financial Intelligence Unit (FIU) after paying a $1.06 million fine for previously operating without proper authorization.

This registration has allowed the exchange to restore services for existing Indian users as of February 25, with new user onboarding set to resume gradually.

Despite these regulatory advances, Bybit faces challenges in certain markets.

In Japan, the Financial Services Agency (FSA) recently called for major app stores to remove Bybit and other unregistered crypto exchanges from their platforms.

Japanese authorities cited concerns about unlicensed operations and potential risks to investors in the country.

The exchange also dealt with a major security incident when over $1.4 billion was looted from its platform in a breach attributed to North Korea’s Lazarus Group.

In response, Bybit implemented crisis management protocols and offered a $140 million bounty to help track down the attackers and recover stolen assets.

The company has maintained that user funds remain secure and fully backed, clarifying that the vulnerability was in Safe Wallets’ system rather than Bybit’s internal infrastructure.

UAE Positions Itself as Digital Asset Hub

Bybit’s incoming operational license will add to the UAE’s growing ecosystem of regulated virtual asset service providers.

The country has established specialized economic zones such as the Dubai Multi Commodities Centre (DMCC) and Abu Dhabi Global Market (ADGM) that offer crypto-friendly frameworks while maintaining compliance with international standards.

The SCA’s in-principle approval of Bybit aligns with the UAE’s broader economic vision to diversify beyond oil and launch itself as a technology and financial hub.

Government initiatives have included the Dubai Blockchain Strategy and various programs designed to attract blockchain businesses and talent to the region.

Industry observers note that the UAE’s approach stands in contrast to more restrictive policies in other jurisdictions.

While countries like China have implemented outright bans and others have imposed stringent limitations, the UAE has opted for a regulated approach that allows innovation within defined parameters.