Bybit, a cryptocurrency exchange, has announced receiving provisional sanction from the Virtual Assets Regulatory Authority (VARA) to enhance its presence in Dubai.
The exchange emphasized that this approval is “non-operational,” but it enables Bybit to advance toward acquiring a comprehensive Virtual Asset Service Provider (VASP) license.
This will allow the company to provide virtual asset exchange services to qualified investors, institutional investors, and retail customers in Dubai.
Why Dubai?
Dubai’s policies, regulatory clarity, and strategic positioning have made it a significant location for cryptocurrency and blockchain firms.
Bybit, which established its global headquarters in Dubai in 2022, has actively participated in the city’s expanding crypto ecosystem.
According to Helen Liu, chief operating officer of Bybit, “Dubai’s progressive policies, innovation-driven environment, and strategic location provide businesses and investors in the cryptocurrency sector with unparalleled opportunities.”
Liu adds, “Dubai is the optimal location to promote the growth of this thrilling industry and advance digital currencies due to its robust regulatory framework and dedication to becoming a blockchain capital.”
Bybit complies with Dubai’s stringent regulatory standards and is collaborating closely with local authorities, as evidenced by the provisional approval from VARA.
During a panel discussion at Korea Blockchain Week, Binance CEO Richard Teng recently commended Dubai and its regulatory framework for digital assets (KBW2024).
Teng’s commentary on the Middle East emphasized the innovative regulatory strategies implemented in Bahrain, Abu Dhabi, and Dubai. He commended Dubai’s establishment of VARA, which is exclusively responsible for regulating the crypto industry.
VARA Dedicated to Overseeing Virtual Assets
VARA, established to regulate virtual assets in Dubai, has garnered recognition for its progressive yet stringent regulatory framework.
The licensing procedure for virtual asset exchanges, such as Bybit, is comprehensive and necessitates close collaboration between the regulator and the applicant.
Bybit stated it is committed to maintaining these high standards, which is consistent with Dubai’s overarching objective of becoming a global leader in digital assets and blockchain technology.
Bybit withdraws from France As a result of regulatory pressure
Bybit announced its withdrawal from France in August due to the French government’s recent regulatory actions. The organization declared that it would cease to provide products and services to French nationals and residents.
French users’ accounts were restricted to “close-only” mode by Bybit on August 2, which prohibited the addition of any deposits or the establishment of new positions.
