Cryptocurrency exchange Bybit announced that its Dubai entity has obtained a Virtual Asset Service Provider (VASP) license from the Emirate's Virtual Assets Regulatory Authority (VARA) for spot trading, thereby expanding its locally regulated trading business.

Bybit indicates that this Dubai VARA license allows its local entities to provide cryptocurrency spot trading services.

• The public registry of VARA shows that Bybit Fintech FZE is an active licensed institution, authorized to serve three types of investors.
• CEO Ben Zhou described this approval as another step in Bybit's commitment to the Dubai headquarters.
• Bybit plans to apply separately for derivatives approval; currently, its Dubai license is limited to trading services only.
• The exchange stated that since 2026, it has obtained five additional licenses and regulatory approvals in the international market.

According to the company's announcement on October 21st, Bybit Fintech FZE has been approved to provide trading services (Exchange Services), which is some time after the exchange established its international headquarters in Dubai four years ago.

At the same time, this approval allows the local entities of Bybit to carry out activities stipulated under the VARA trading license framework, but it does not automatically authorize all financial products on their international platforms.

The public licensing register of VARA lists Bybit Fintech FZE as active, with the reference number VL on 26/10/003. The regulatory authorities have classified its activities as trading services and permit the company to serve retail investors, qualified investors, and institutional investors.

The register shows that the license was issued on June 20, 2026, while Bybit announced this approval on October 22. Neither document explains the difference between these two dates.

Previously, Bybit received temporary approval from the Dubai regulatory authorities in 2024. During this phase, the company was allowed to continue fulfilling the various requirements necessary to obtain a full operating license.

Subsequently, in October 2025, the exchange obtained full regulatory approval from the UAE Securities and Commodities Authority.

This national-level authorization involves another separate regulatory process. VARA is responsible for virtual asset activities within Dubai, but this does not include the Dubai International Financial Centre, which has its own financial regulatory system.

Ben Zhou Reaffirms Commitment to Dubai After Approval

Bybit, Co-Founder and CEO, Ben Zhou, links the latest announcement with the exchange's decision in 2022 to establish an international headquarters in Dubai.

Zhou praised the emirate's progress in digital asset regulation in a statement attached to the approval announcement, and stated that Bybit intends to continue cooperating with local authorities.

Subsequently, this executive posted on X stating that since its establishment at the headquarters, Dubai has always been crucial to the company's operations.

“Zhou” represents: “Obtaining our VARA license is another step we take towards long-term development,” and it also mentions trust, compliance, and local commitments.

Bybit indicates that its international platform serves over 80 million users. However, this global figure does not reflect how many customers utilize the services through its licensed entity in Dubai.

Since establishing regional operations locally, the company has been involved in blockchain initiatives, industry collaborations, and knowledge-sharing projects in the region.

Bybit Seeking separate licensing for encrypted derivatives

Although this license covers spot trading, Bybit still intends to apply for additional authorization to engage in derivatives business, which is also an important part of its global operations.

The Chief Legal and Compliance Officer of the exchange, Peter Loo, stated that the company hopes to introduce these products to Dubai after obtaining the necessary approvals.

Loo said in the company announcement: 'Over time, we also hope to expand the licensing activities to derivatives.'

Dubai has separate requirements for derivatives trading, which involve customer qualifications, risk management, and financial safeguards, among other matters. A spot service trading license alone does not imply the ability to offer leveraged futures products.

Regulatory authorities have established specialized derivative trading rules for licensed institutions, including margin requirements, customer protection, and conditions for regulatory intervention during periods of market stress.

Bybit has not yet announced when it will submit or complete the derivative licensing application, nor has it specified which contracts may be provided if approved.

Bybit claims to have received five additional regulatory approvals in 2026

In a company-themed speech in October, Zhou mentioned that the company obtained five licenses and regulatory approvals in the European Union, the Cayman Islands, Indonesia, South Africa, and El Salvador in 2026.

In the latest announcement from Dubai, the company did not provide the numbers for each authorization, nor did it distinguish between the specific licensing services corresponding to different jurisdictions.

As Dubai continues to expand, local licensing activities are also on the rise. The parent company of Kraken, Payward, received full approval from Dubai in October, while Flowdesk obtained brokerage dealer authorization in August.

These licenses correspond to different types of activities and customer categories under the VARA rules.

Bybit indicates that the company continues to invest in compliance, security, and risk management in its international operations. Loo also signifies that strong supervision and user protection are priorities for its Dubai business, and the company will also engage in further discussions with VARA regarding derivative services.