Bybit has secured a Virtual Asset Service Provider licence from Dubai’s Virtual Assets Regulatory Authority (VARA), authorizing spot exchange services through its entity, Bybit Fintech FZE. The approval marks another step in the cryptocurrency exchange’s efforts to expand its international operations while operating within established regulatory frameworks.
Dubai has become a key part of Bybit’s international strategy since the company established its international headquarters in the emirate in 2022. The latest licence strengthens its regulatory position in the region and reflects the importance of formal authorization as crypto exchanges compete for users across multiple jurisdictions.
The approval also comes amid a broader licensing push by Bybit. The company says it has secured five new licences or regulatory approvals during 2026 across markets including the European Union, the Cayman Islands, Indonesia, South Africa and El Salvador. These efforts form part of its stated focus on compliance, security and risk management as regulators around the world continue to refine requirements for digital-asset businesses.
VARA, established in 2022, oversees virtual-asset activities in Dubai under a framework that separates services such as exchange operations, brokerage, lending and custody. This means approval for one activity does not automatically authorize a company to offer every type of crypto service. For Bybit, the new licence covers spot exchange services, while any expansion into additional activities remains subject to the relevant regulatory permissions.
Bybit has also strengthened its compliance leadership. In August, the company appointed Peter Loo as chief legal and compliance officer to oversee its global regulatory strategy, licensing and compliance operations. Loo previously served as general counsel and head of sector development at VARA, where he worked on regulatory frameworks for virtual-asset businesses. His earlier experience includes roles at Barclays Capital, MF Global and Amber Group.
The company has indicated that it hopes to extend its licensed activities to derivatives trading, a significant part of its global business. However, that expansion would require additional regulatory approval and should not be interpreted as part of the current spot licence.
For the wider crypto industry, Bybit’s approval highlights how regulatory access is becoming an important factor in international growth. Licences can help exchanges establish clearer operating boundaries and build user confidence, but they also bring ongoing compliance obligations. The next milestone will be whether Bybit can secure further permissions and translate its expanding regulatory footprint into sustainable growth in Dubai and other markets.
