Bybit has secured a full virtual asset service provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA), enabling its local entity, Bybit Fintech FZE, to offer spot trading services. The exchange announced the development on Thursday, confirming that VARA’s public register lists the new license as active for retail, qualified, and institutional investors.
This approval follows an earlier in-principle status that was non-operational and did not permit customer service in Dubai. According to a company spokesperson, Bybit must still complete VARA’s launch process and satisfy specific operational requirements before commencing spot trading activities. No timeline for this final launch phase was provided.
The move complements Bybit’s existing regulatory footprint in the United Arab Emirates. In October 2025, the exchange obtained a full Virtual Asset Platform Operator license from the federal Securities and Commodities Authority (SCA). However, that federal license explicitly excludes Dubai from its jurisdictional scope, meaning the SCA-licensed entity, Bybit Virtual Asset Platform Operator LLC, cannot serve customers within the emirate. Consequently, the new VARA license is required to operate locally in Dubai.
Securing a full VASP license from VARA marks a critical transition for Bybit from regulatory intent to operational capability in one of the world's most prominent crypto hubs. Unlike the previous in-principle approval, which served as a preliminary gatekeeping step, this active status allows the exchange to legally onboard users in Dubai. However, the distinction between holding a license and launching services remains significant; the requirement to complete VARA’s launch process introduces a final layer of compliance verification that could impact time-to-market strategies.
The dual-license structure highlights the complexity of operating across different jurisdictions within the UAE. While the SCA license covers federal operations, it explicitly excludes Dubai, necessitating separate authorization from VARA. This fragmentation requires exchanges to maintain distinct legal entities and compliance frameworks for each regulator. For Bybit, the successful integration of these parallel regulatory tracks will be essential for scaling its user base without triggering cross-border compliance conflicts or operational delays.
