Bybit Receives In-Principle Approval from UAE’s Securities & Commodities Authority

Bybit, a major cryptocurrency exchange, has achieved a significant milestone by receiving an in-principle approval from the Securities & Commodities Authority (SCA) of the United Arab Emirates (UAE). This approval, dated February 18, paves the way for Bybit to establish itself as a Virtual Asset Platform Operator in the country.

The in-principle approval is a crucial step towards Bybit obtaining a fully operational license, enabling the exchange to offer its digital asset services to both individual and institutional clients in the UAE. This development marks a significant achievement for Bybit, especially in light of its recent hack, which resulted in a loss of $1.5 billion.

Regulatory Approvals and Expansion

Bybit’s licensing in the UAE follows its existing regulatory approvals in the Middle East. The exchange is actively securing regulatory approvals worldwide, expanding its presence in key markets such as India, Georgia, Kazakhstan, and Turkey.

The UAE has established itself as a global hub for crypto and blockchain innovation, driven by progressive regulatory frameworks that balance growth with investor protection. Bybit’s in-principle licensing is part of a series of approvals for crypto platforms and digital assets to operate in the UAE.

Recent Developments in UAE’s Crypto Regulations

On February 24, the Dubai Financial Services Authority approved Circle’s USD Coin (USDC) and EURC as the first officially recognized stablecoins under Dubai’s new token regime. Earlier, in April 2024, Crypto.com’s Dubai-based entity, CRO DAX Middle East FZE, received full operational approval from the Dubai VARA, licensing the company to offer services such as spot trading and staking brokerage to both institutional and retail clients within the UAE.

VARA is set to introduce new rules requiring crypto businesses within the UAE to disclose the identities of crypto whales, aiming to protect investors by revealing whether a cryptocurrency is highly concentrated in the hands of a few entities. VARA is also considering new risk disclosure requirements to ensure investors fully understand the assets they’re purchasing.

Some key takeaways from the UAE’s crypto regulations include:

  • Increased transparency: VARA’s new rules aim to increase transparency in the crypto market by requiring businesses to disclose the identities of crypto whales.
  • Investor protection: The UAE’s regulatory frameworks prioritize investor protection, ensuring that investors have access to accurate information about the assets they’re purchasing.
  • Progressive regulations: The UAE’s regulatory environment is designed to balance growth with investor protection, making it an attractive hub for crypto and blockchain innovation.

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