Bybit’s Dubai Operations: Current Limitations and Future Plans
Cryptocurrency exchange Bybit already operates out of Dubai, but its current licensing doesn’t allow the firm to serve all customers, according to its CEO. On June 27, Bybit FinTech FZE, a subsidiary of the global exchange Bybit, announced it received the Minimum Viable Product (MVP) preparatory license from Dubai’s Virtual Assets Regulatory Authority (VARA).
Bybit CEO Ben Zhou told that the exchange is vigorously pursuing a full market product license in Dubai. This upgrade will allow the exchange to cater to a wider customer base in the United Arab Emirates (UAE).
Restrictions of the Current MVP License
Zhou explained that Bybit’s current MVP license only permits the firm to serve a very restricted set of accredited investors in Dubai. However, he expressed optimism about their progress as VARA shows a strong inclination towards supporting innovation and entrepreneurship.
Bybit’s Vision: A Full-Scope Digital Asset Exchange
Once fully licensed in Dubai, Bybit plans to transform into a full-scope digital asset exchange. According to VARA’s data, a full license would enable Bybit to offer a range of services, including advisory, broker-dealer, custody, and exchange services, lending and borrowing, payments and remittances services, and investment services.
Dubai: An Attractive Location for Crypto Businesses
Zhou praised Dubai and the UAE for their efforts in providing a level playing field for businesses and actively working on regulatory clarity. He appreciated Dubai’s readiness to adapt to future advancements, making it an ideal location for investors and digital asset firms like Bybit.
Bybit’s Ongoing Expansion and Regulatory Developments
In April 2023, Bybit opened its new headquarters in Dubai, following the in-principle approval from VARA in April 2022. The firm’s expansion plans also include obtaining operational licenses in other jurisdictions. Recently, Bybit secured a license to operate as an exchange and custody service in Cyprus and pre-approval in Kazakhstan.
Scope for Expansion in Key Jurisdictions
The company is also closely monitoring developments in other key jurisdictions, such as the United Kingdom, Hong Kong, and the European Union, as it plans for aggressive global expansion, added Zhou.
