Bybit Receives UAE's First Full Virtual Asset Platform License From Securities Authority
According to CoinDesk, Bybit secured the Virtual Asset Platform Operator License from the Securities and Commodities Authority on October 9, 2025. The exchange becomes the first crypto platform to receive this complete federal license from the SCA. Bybit, the world's second-largest cryptocurrency exchange by trading volume, received In-Principle Approval from the SCA in February 2025 before obtaining full authorization.
The license allows Bybit to provide regulated trading, brokerage, custody, and fiat conversion services to retail and institutional clients across all UAE emirates. CEO Ben Zhou stated the license demonstrates the company's commitment to compliance and transparency. The SCA approval positions Bybit ahead of other exchanges that hold only provisional licenses under Dubai's Virtual Asset Regulatory Authority.
Why This License Matters
This federal license grants Bybit access to customers across the entire UAE mainland, not just Dubai. Other major exchanges like Binance and OKX operate under VARA licenses that restrict them to Dubai jurisdiction. The SCA license enables Bybit to serve clients in Abu Dhabi, Sharjah, and other emirates without additional approvals.
Bybit plans to establish a regional operations center in Abu Dhabi with over 500 employees across Dubai and Abu Dhabi. The exchange will accelerate hiring in compliance, operations, and customer service departments. The company also announced new education and Web3 programs in partnership with local institutions. This expansion follows Bybit's MiCA license approval in May 2025 and resumption of full operations in India in September 2025.
Impact on UAE's Digital Asset Ecosystem
The license strengthens the UAE's position in the global crypto market by providing regulatory clarity that other regions lack. Cointelegraph reported in August 2025 that the SCA and VARA formalized a partnership to unify crypto regulations across the UAE. Under this agreement, Dubai-based licenses can now service the entire UAE through mutual recognition mechanisms between the two authorities.
The unified framework reduces operational duplication for exchanges and lowers barriers to national market coverage. VASPs operating in or targeting Dubai must obtain VARA licenses, which are automatically registered with the SCA for UAE-wide operations. VASPs intending to operate in emirates outside Dubai must obtain licenses directly from the SCA. The DIFC and ADGM financial free zones remain exempt from this agreement and operate under independent regulatory frameworks.
According to Thomas Murray, institutional adoption of digital assets accelerated in 2025 as regulatory frameworks matured globally. The UAE's forward-thinking regulations attract leading service providers and drive market activity in the region. Recent amendments to ADGM's Digital Asset Regulatory Framework streamline approval processes and enhance investor protection. These regulatory advances position the UAE ahead of many Western markets in providing clear compliance pathways for crypto businesses.
Further Reading
For those interested in decentralized governance structures and organizational tools, our comprehensive DAO tooling guide provides detailed analysis of over 100 platforms and tools used in decentralized autonomous organizations. The guide covers governance frameworks, treasury management solutions, and voting mechanisms that enable transparent decision-making in blockchain-based communities.
