ByBit Makes History as UAE’s First Licensed Crypto Exchange - Regulatory Milestone Achieved

Dubai's financial landscape just got a major crypto upgrade as ByBit secures the coveted first-mover advantage in the UAE's regulated digital assets space.

The Regulatory Breakthrough

ByBit didn't just enter the market—they rewrote the rulebook by becoming the inaugural exchange to receive full licensing from UAE authorities. This isn't another temporary operational permit; it's the real regulatory deal that separates serious players from the jurisdictional tourists.

Market Implications

The licensing stamp instantly transforms ByBit from offshore contender to onshore champion in one of wealthiest regions globally. While other exchanges chase regulatory clarity, ByBit just demonstrated how to actually obtain it—a move that should make compliance departments across the industry simultaneously applaud and panic.

Strategic Positioning

Securing first-licensed status in the UAE gives ByBit unparalleled access to institutional capital and high-net-worth investors who've been waiting for properly regulated on-ramps. Because nothing says 'we're legitimate' like government paperwork that took actual lawyers to complete.

The timing couldn't be more perfect—just as traditional finance finally admits crypto isn't going away, ByBit positions itself as the grown-up in the room while maintaining that delicious crypto volatility everyone secretly loves. Because let's be honest: regulated doesn't have to mean boring, it just means the profits are taxable now.

ByBit Gets SCA Approval in UAE

Bybit initially received its In-Principle Approval (IPA) from the SCA in February 2025 with the help of the Blockchain Centre, Abu Dhabi, in navigating SCA’s framework. Earlier this year, Bybit snagged a Markets in crypto Assets (MiCA) license, and the firm also resumed full trading operations in India in September. “Receiving the full Virtual Asset Platform Operator License from the SCA is a testament to Bybit’s unwavering commitment to building trust through compliance and transparency,” added Bybit CEO Zhou in Thursday’s statement.

Multiple crypto firms with operations in Dubai are regulated under the VARA framework. However, SCA regulation is wider in scope as it applies to the UAE mainland, and applies to entities outside Dubai’s jurisdiction under VARA. With the new SCA license, ByBit can offer regulated virtual asset trading, brokerage, custody, and fiat conversion services to both retail and institutional clients across the UAE.

Amid sweeping changes in the regulation of crypto worldwide, the UAE has become a hub for crypto enthusiasts to operate. Bybit’s regulatory milestone represents a contrast to the adversarial regulatory environments in the U.S. and parts of Asia, signaling that the Middle East continues to emerge as a hub for compliant crypto growth and adoption. The US and other countries in the West/Europe are also becoming more welcoming, but the UAE has been a staple in crypto for years.