Crypto exchange Bybit has received a Virtual Asset Service Provider (VASP) licence from Dubai’s Virtual Assets Regulatory Authority, known as VARA. The approval covers exchange services for spot trading and was issued to Bybit Fintech FZE, the company’s Dubai entity.
Bybit set up its international headquarters in Dubai in 2022, so this is a notable step toward operating fully under local rules.
What the Licence Covers
VARA sorts crypto firms by activity type, such as exchange services, broker dealer services, lending and custody. Each one needs its own approval. Bybit’s licence is for Exchange Services only.
VARA’s public register lists Bybit Fintech FZE as an active licensee, and it can serve retail, qualified and institutional investors. But the licence doesn’t automatically cover every product on Bybit’s international platform.
A Date Gap Worth Noting
The register records the issue date as June 20, 2026. Bybit announced the approval on October 21. The reports don’t explain the difference, so it’s best to treat both dates as given.
The Road to This Licence
Bybit got provisional approval from VARA in 2024, which let it keep working on the requirements for a full licence. In October 2025, it won full UAE approval from the Securities and Commodities Authority. That was a separate process. VARA covers virtual asset activity in Dubai, except the Dubai International Financial Centre, which has its own regulator.
What Bybit’s Leaders Said
CEO Ben Zhou called the licence another step in building for the long term, pointing to trust, compliance and local commitment. He also praised Dubai’s progress in shaping digital asset rules.
Peter Loo, the chief legal and compliance officer, joined in August. He previously worked at VARA as general counsel and head of sector development. He said the approval shows how important oversight and user protection are.
Derivatives Are Not Included Yet
Spot trading means buying and selling crypto at current prices. Derivatives, such as leveraged futures, are a different product, and they’re a big part of Bybit’s global business. Loo said the company hopes to add them in time, but only after getting more approvals.
Dubai has separate rules for derivatives, covering client eligibility, risk management and margin. Bybit hasn’t said when it will apply or which contracts it might offer.
Other Approvals in 2026
Zhou said Bybit has collected five other licences or approvals this year across the European Union, the Cayman Islands, Indonesia, South Africa, and El Salvador. Bybit also says its global platform has more than 80 million users, though that doesn’t show how many will use the Dubai entity.
Bybit isn’t the only one. Kraken’s parent company, Payward, received full Dubai approval in October, and Flowdesk got broker-dealer authorisation in August.
What This Means for Users
A licence means the entity is supervised, which matters for trust. Still, it’s smart to check the VARA register yourself before using any platform and to remember that crypto is risky. This article is for information only and isn’t investment advice.
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Bybit now has a VARA licence for spot trading in Dubai, but the bigger prize, derivatives, still needs separate approval. For now, it’s a step forward for the exchange and one more sign of how fast Dubai’s crypto rules are developing.