Top Crypto Exchange ByBit Gets Crypto License
Dubai Virtual Asset Regulatory Authority (VARA) has approved Bybit to operate its cryptocurrency exchange and custodial services, the world’s second largest crypto exchange by derivatives volume noted on its website. Facility of this VARA license glorifies a prominent milestone for Bybit exchange towards its developed journey from its Dubai headquarters that it set up back in 2022.
Only Binance exchange has a higher daily volume in derivatives trading than Bybit, which is more than $15.8b in 24-hour business.
The temporary license goes a long way to place Bybit at the right end of one of the fastest rising crypto hubs, and solidifies Dubai as one among the absolute first resorts where blockchain and digital asset companies may go at whatever point they need businesses enlisted by banks they can make certain to rely on.
Dubai — The New Crypto Capital of the World?
With crypto regulations very much a live issue in many far more advanced economies, Dubai has rushed to fill the vacuum and offer an extremely welcoming environment for those looking to set up crypto firms.
Bybit COO Helen Liu said:
“Dubai, as a global business and trading hub with an open economy and encouraging policies, has made it easy for talent to come close and do what they do best.”
Regulatory clarity or speculation on the city level, in a large part due to VARA, has seen a swarm of crypto companies seeking less hostile jurisdictions to expand their operations.
Gaining a VASP license in Dubai allows you to work as a VASP. In the entire UAE This is important now because VARA has decided this. It is a game changer for the region, attracting international crypto firms looking to enter the country. This provisional license is a stepping stone for Bybit to obtain the full operational license, in addition to serving both retail and institutional investors.
Virtual Assets Regulatory Authority (VARA)
(VARA), the regulatory body set up by the authorities of Dubai, United Arab Emirates, that oversees the virtual asset sector, i.e, cryptocurrencies and other such digital assets, including non-fungible tokens (NFTs).
VARA, founded in 2022, establishes a legal and transparent environment to construct virtual asset service providers (such as exchanges), enact laws for anti-money laundering (AML) and counter-terrorism financing standards, and legalize virtual assets. As a center rooted in Dubai, VARA aims to safeguard investors and preserve market integrity, as well as drive business adoption for the new asset class across a technologically progressive value chain.
ByBit’s Strategic Move Toward Global Expansion
Established in 2018 and reigning a daily derivatives trading volume of over $15.8 billion, Bybit relocated its headquarters to Dubai in 2022. The move into the Middle Eastern city by the blockchain fundraising platform coincides with Dubai’s aspirations as a top hub for blockchain and crypto. Realizing the importance of this technology, the city is trying everything possible to be crypto friendly and has even drawn a massive influx of various projects interested in operating within a more constructive environment.
Bybit Chief Operating Officer Helen Liu said:
“Dubai is providing an unprecedented opportunity for businesses and investors in the cryptocurrency space. Dubai is one of the ever fastest changing regulatory region that lures Web3 and blockchain projects to its financial shore.”
This specific sector has developed an important improvement as UAE regulators are now permitting all VASPs to operate country wide, following the announcement by The Securities And Commodities Authority (SCA) and VARA back on September 09, 2024 allowing Dubai Licensed VASPs to serve the entire country.
What the Provisional License Means for Bybit?
The regulatory license essentially gives Bybit the approval to operate but that is a provisional part of what will end up in full operation.
A constant visionary push in the direction with key strategic moves being made by the company including renewing an existing partnership agreement with the investor giant, Dubai Multi Commodities Crypto Centre (DMCC), now transitioning into a key advisory role.
The full license would allow Bybit to offer a much wider-range of offerings from Dubai, providing them with access to one of the world’s fastest-growing economies. Such a move would not only further achieve its global expansion mission but also enable local and international investors in the UAE to take advantage of an array of crypto offerings.
A Bybit spokesperson said:
“A full license would be a boon for Bybit in more ways than one as we’ll be able to strengthen our global presence from the heart of Dubai.”
Bybit’s Future in Dubai
Bybit’s ultimate goal is to acquire a full operational license in Dubai, is just the start phase of the exchanger’s journey. However, Bybit is entrusted to gain from the regulatory framework in Dubai and the growing interest of the city in virtual currencies.
By those volumes alone, its intentions to move beyond the heart of Dubai are already well on their way; Bybit processes over $15.8 billion in daily derivatives trading volume. It is likely that the company, as it inches towards a full license, will have great influence over how Dubai positions itself in the global cryptocurrency space going forward.
With compulsory regulatory certainty looming over in the crypto space, Dubai providing an innovative-friendly environment with Bybit’s suitable location, now it is a match made in heaven. With Dubai powering ahead, Bybit is perfectly positioned to feed on the ambitions of the city as it opens up a wealth of crypto adoption and opportunities in one of the world’s fastest-growing economies.
