Bybit Becomes First Fully Licensed Crypto Exchange in UAE Because Regulated Chaos Sounds Fun
Big news, crypto fans: Bybit has officially snagged the full Virtual Asset Platform Operator License from the UAE’s Securities & Commodities Authority (SCA). Translation: Bybit is now the first crypto exchange in the UAE allowed to offer regulated trading, custody, brokerage, and fiat conversion services. Welcome to regulated chaos, but with a license.
Let’s rewind a little. Back in February 2025, Bybit got its In-Principle Approval (IPA) from the SCA to set up as a Virtual Asset Platform Operator. That was the preliminary “yes, you look good on paper, keep filling out forms” step. Now, with the full license in hand as of October 2025, Bybit can finally roll out all its services in the UAE in regulated fashion not just shadow-playing with provisional approvals.
What does “fully licensed” mean here? According to the SCA license, Bybit can legally offer regulated virtual asset trading, brokerage, custody, and fiat-to-crypto conversion services to both retail and institutional clients. Not just the wealthy or accredited investors, not just under restricted conditions. This is full operational status.
Of course, this is also a proud headline for the UAE, which aims to be a global hub for digital assets and blockchain innovation. Bybit isn’t just stopping in Dubai — it plans major expansions in Abu Dhabi, new local hiring (think hundreds of compliance, operations, and customer service roles), and launching education & Web3 programs to keep the local crypto ecosystem fed. Because you can’t have regulation without a little paperwork, right?
Critics will remind you: licensing is great, but execution matters. Will service be smooth? Will custody actually protect funds? Will fiat conversion be affordable? And of course, will local users actually trust exchanges after so many headline blunders in crypto? But for now, Bybit gets to wear the crown: first fully operational licensed crypto exchange in the UAE. That’s not nothing.
FAQs
Q1: Is it confirmed that Bybit has the full operational license from SCA in the UAE?
A1: Yes as of October 2025, Bybit announced it secured the full Virtual Asset Platform Operator License from the UAE’s SCA.
Q2: What can Bybit now legally offer under this license?
A2: Under the license, Bybit can provide virtual asset trading, brokerage, custody, and fiat conversion services to both retail and institutional clients across the UAE.
Q3: Wasn’t Bybit already operating in the UAE under some approvals?
A3: Yes. Before this full license, Bybit had In-Principle Approval (IPA) from the SCA and provisional or restricted approvals in Dubai’s VARA jurisdiction. But those were less than full operational status.
Q4: What makes this licensing important?
A4: It means legitimate compliance with UAE regulatory frameworks, offering more legal protection to users, bridging gaps with fiat-crypto services, and boosting confidence from institutions. It’s also a statement about the UAE’s ambitions in the digital asset space.
Q5: What are Bybit’s plans following the license?
A5: Expansion in Abu Dhabi and Dubai operations, hiring over 500 staff locally, introducing Web3 education programs, and bringing its full portfolio of global products into compliance inside UAE.
Q6: Are there risks or downsides still?
A6: Sure. Even with the license, there are execution risks user experience, regulatory changes, compliance audits, competition, and user trust to rebuild. Regulation doesn’t guarantee low fees or perfect service.