Update Sept. 16, 11:51 am UTC: This article has been updated to include quotes from a Bybit spokesperson.
Bybit, the world’s second-largest crypto exchange by derivatives volume, has secured a provisional license in Dubai two years after setting up its headquarters in the city.
The centralized crypto exchange (CEX) has received a non-operational license from the Virtual Asset Regulatory Authority (VARA), according to an announcement shared with Cointelegraph.
According to Helen Liu, Bybit’s Chief Operating Officer, the new license represents a major milestone in the company’s global expansion strategy, driven by Dubai’s ambition to become a leading blockchain hub.
She told Cointelegraph:
“Dubai's strategic location, progressive policies, and innovation-driven environment offer unparalleled opportunities for businesses and investors in the cryptocurrency sector.”
An increasing number of crypto companies are relocating to Dubai, which is quickly establishing itself as a global hub with crypto-friendly regulations.
In a significant regulatory development, UAE regulators will allow Dubai-licensed virtual asset service providers (VASPs) to service the entire country, the Securities And Commodities Authority (SCA) and VARA announced on Sept. 9.
Related: Crypto and commodities poised for massive rally, says market analyst
Bybit vying for operational crypto license in Dubai
While the provisional license enables Bybit to serve both retail and institutional investors in Dubai, the exchange continues to work toward a full operational license in the region.
The exchange moved its headquarters to Dubai in 2022 and recently renewed its partnership with the Dubai Multi Commodities Crypto Centre (DMCC) — transitioning from an ecosystem partner to a key advisory role.
Bybit chose Dubai thanks to the regulatory foresight on the emerging digital asset industry, a Bybit spokesperson told Cointelegraph:
“A full license would be meaningful in more ways than one for Bybit as we expand our global footprint from the heart of Dubai and bring crypto opportunities home for one of the fastest growing economies in the world.”
Bybit is the world’s second-largest crypto exchange by 24-hour derivatives volume, with over $15.8 billion worth of derivatives volume on Sept. 16, second to Binance’s $38.5 billion, according to CoinMarketCap data.
Largest crypto exchanges by derivatives volume. Source: CoinMarketCap
Related: Nomura crypto arm Laser Digital bags Abu Dhabi license
Dubai: the next global crypto hub?
Dubai has been making significant regulatory strides to attract more Web3 and crypto firms that are looking for more crypto-friendly regimes.
In a significant upgrade to the country’s regulation, the Dubai Court of First Instance has recognized salary payments in crypto as valid under employment contracts, Cointelegraph reported on Aug. 16.
Two months earlier, on June 5, the Central Bank of the UAE approved the issuance of a new stablecoin licensing and monitoring system.
Asking Dubai Crypto Tycoons How They Got Rich. Source: Cointelegraph
In April, the world’s largest crypto exchange by volume, Binance, received a long-awaited virtual asset service provider license in Dubai after co-founder Changpeng Zhao gave up his voting power in the exchange’s local entity.
Leading onchain security firm Chainalysis also set up regional headquarters in Dubai on May 8, after the firm has been “actively engaging” with local government stakeholders to offer advice on best practices for regulatory development in the crypto industry that drives innovation.
Magazine: Bitcoin ETFs may face hacker threats, Ellison seeks no prison time, and more: Hodler’s Digest, Sept. 8 – 14