Bybit Gets UAE’s First Full Virtual Asset Licence: A Huge Step for Crypto Regulation
The crypto world just witnessed something big. Bybit, one of the most popular crypto exchanges, has received the first full Virtual Asset Service Provider (VASP) licence from the Securities and Commodities Authority (SCA) of the United Arab Emirates.
This approval marks not only a victory for Bybit but also a big step for the UAE, as it continues building its image as a trusted global center for blockchain and digital finance innovation.
So What Exactly Is This Licence?
Bybit’s newly achieved licence allows it to operate across the entire UAE mainland, not just under Dubai’s VARA (Virtual Assets Regulatory Authority) rules. That means the exchange can now provide:
- Fully regulated crypto trading and brokerage services
- Custody and fiat conversion for both small investors and big institutions
- Access to secure and compliant digital asset operations
The full licence came months after Bybit received in-principle approval in February 2025, which proves the UAE’s confidence in the company’s compliance and governance model.
Bybit’s Long Journey Toward Trust and Compliance
It wasn’t an easy road for Bybit, honestly. Earlier this year, the platform got hit by one of the biggest hacks in crypto history — hackers allegedly linked to North Korea’s Lazarus Group stole more than $1.4 billion worth of Ether.
After that disaster, Bybit didn’t just give up. It rebuilt its system from scratch, made huge updates in cybersecurity, and re-opened global operations after several months.
Now, getting a full licence in UAE is not only a comeback story, but also a message that following compliance and rules actually pays off in the crypto world.
Bybit’s Return to India After Compliance Issues
Interestingly, Bybit also made its comeback in India recently. The exchange got itself registered under the FIU-IND (Financial Intelligence Unit-India) as per the PMLA (Prevention of Money Laundering Act).
They had to pay a $1 million fine (around ₹8 crore) for older violations, but that’s now behind them.
Now Indian users can once again:
- Use Bybit’s Android and iOS apps
- Access the website (rolling out slowly in phases)
- Trade crypto legally under AML and KYC rules
It’s a clear sign that Bybit wants to play by the rules and regain user trust — something that many exchanges still struggle to do.
👉 Related: Bybit Relaunches in India After FIU Approval
Why UAE’s Approval Is Such a Big Deal
Bybit’s CEO Ben Zhou said the UAE has turned into a global role model for crypto regulation, while Co-CEO Helen Liu mentioned that the SCA’s structured approach gives exchanges the “confidence and clarity” they need to operate safely.
Unlike the US, where crypto rules are still confusing, or India, where tax policies sometimes scare investors, the UAE’s approach is simple — innovate, but stay compliant.
This makes the UAE one of the safest yet most progressive places for crypto businesses right now.
UAE’s Growing Crypto Ecosystem
The UAE has been actively creating a regulatory-friendly environment for digital assets, while still keeping investor safety in focus.
Some recent developments include:
- Fining 19 crypto firms for not having proper licences
- Setting up crypto education and awareness programs
- Allowing banks to partner with crypto companies for better fiat-crypto conversions
This kind of balanced regulation helps attract serious investors and gives crypto companies a stable base to grow from.
Learn more: CoinDesk – UAE’s Crypto Regulatory Framework
Pros and Cons of Bybit’s UAE Licence
✅ Pros
- Full regulatory approval across UAE
- Better transparency and investor safety
- Expands global trust and brand image
- Opens access to more financial products
- Helps UAE become a global crypto hub
❌ Cons
- Strict compliance can slow innovation
- Higher operational costs due to regulations
- Pressure to maintain top-level security always
Bybit vs Other Leading Crypto Exchanges
| Exchange | Licence Type | Operational Reach | Compliance Focus |
|---|---|---|---|
| Bybit | Full SCA Licence (UAE) | Global | Strong AML/KYC, security audits |
| Binance | Partial VARA Licence | Limited UAE access | Working on global compliance |
| OKX | Licensed in some regions | Asia, Europe | Uses multi-sig cold storage |
| Coinbase | SEC Registered (US) | North America, Europe | Highly regulated, strong oversight |
Bybit’s new licence gives it a clear edge over competitors like Binance, which still faces challenges in regulatory clarity across multiple countries.
Expert Take: Why This Matters for the Crypto Industry
Crypto analysts believe Bybit’s SCA licence will inspire other exchanges to follow the compliance-first route.
Here’s what it signals for the future:
- Regulation and innovation can co-exist.
- UAE might become the Singapore of digital assets.
- Institutional investors now have safer crypto platforms to trust.
For traders, it also means a more stable crypto environment in the long run.
Final Thoughts
Bybit’s UAE approval isn’t just another headline — it’s a turning point for crypto regulation. It proves that when exchanges take compliance seriously, governments are willing to open doors for growth.
The UAE continues setting the example of balanced innovation, and Bybit’s win might be the start of a new era where crypto gets the legitimacy it deserves.
FAQs
1. What is Bybit’s full virtual asset licence?
It’s an official approval from the UAE’s SCA that lets Bybit offer trading, brokerage, and custody services under legal supervision.
2. Why is this licence so important for Bybit?
It makes Bybit the first exchange in UAE to be fully licensed, boosting its trust among investors and governments worldwide.
3. Is Bybit available again in India?
Yes, it is. Bybit restarted operations after registering with FIU-IND and paying its compliance fine earlier this year.
4. How does UAE compare to other countries in crypto rules?
The UAE offers one of the most balanced and transparent frameworks, unlike the US or India, where policies often remain uncertain.
5. Can UAE become a crypto hub?
Yes, with clear laws and global partnerships, the UAE is well on its way to becoming the world’s top destination for crypto innovation.
