According to a press release dated September 16, 2024, Bybit has obtained a provisional non-operational Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Asset Regulatory Authority (VARA). Interestingly, the authorization does not entail only digital assets exchange services via Bybit. Instead, it spans retailers, institutional users, and qualified investors.
While the license might qualify as non-operational, it marks a significant landmark in the exchange’s quest for a full operational permit in Dubai. In addition, it underscores Bybit’s commitment to regulatory compliance adherence amid tight global scrutiny.
Speaking about the trading platform’s latest feat, Helen Liu, the Chief Operating Officer (COO) at Bybit, stated: “Dubai’s strategic location, progressive policies, and innovation-driven environment offer unparalleled opportunities for businesses and investors in the cryptocurrency sector.”
In addition, the COO commented, ”With its robust regulatory framework and commitment to becoming a blockchain capital, Dubai is the ideal place to advance digital currencies and foster growth in this exciting industry.”
Bybit’s VASP Approval Hurdles
Despite establishing its headquarters in Dubai in 2022, Bybit waited about two years to achieve its latest feat. Expectedly, the procedures involved in the non-operational permit approval involved the usual bureaucratic processes that require the exchange's commitment and patience.
Per the released document, the endorsement procedures involved thorough and collaborative steps, underscoring VARA’s high regulatory standard. Hence, it took consistent and intentional efforts from the trading platform's camp to tick all the boxes required for the license approval.
Bybit Continues to Gain Global Acceptance Amid Tight Restrictions
Globally, Bybit has emerged as one of the exchanges with significant penetrations. In one of our old news articles, we reported that Bybit and Binance are on the verge of pioneering regulated digital assets trading in Kazakhstan.
For context, Kazakhstan's Astana Financial Services Authority (AFSA) in Kazakhstan deemed both exchanges worthy of operating in the country’s jurisdiction. Consequently, the trading platforms received operational permits.
However, while Bybit’s license was permanent, Binance’s was partial approval. Therefore, it underscores the authenticity of the assertion, painting Bybit’s growing influence in the face of strict regulatory measures.
