Cryptocurrency exchange Bybit has secured a Virtual Asset Platform Operator License from the Securities and Commodities Authority of the United Arab Emirates (UAE), eight months after the regulator granted the company in-principle approval.
In a Thursday notice, Bybit said approval from the UAE financial regulator would allow the exchange to offer its global products and services to the region. Authorities in Austria granted the company similar licensing approval in May, and the exchange registered in India in February after briefly suspending its service and paying a $1-million fine over compliance violations.
“Receiving the full Virtual Asset Platform Operator License from the SCA is a testament to Bybit’s unwavering commitment to building trust through compliance and transparency,” said Bybit co-founder and CEO Ben Zhou. “The UAE has emerged as a global leader in digital asset regulation, and this recognition underscores the strength of our security and governance standards.”
Many crypto companies seeking regulatory approval for different regions of the UAE often have to rely on a patchwork approach to offer services to residents.
Dubai’s Virtual Assets Regulatory Authority (VARA) and the UAE’s Securities and Commodities Authority announced a strategic partnership in August aimed at unifying crypto regulations, including “licensing reciprocity” — having a license approved by one authority recognized by another. VARA granted Bybit a non-operational license in Dubai in September, but the company said at the time it was seeking full approval.
Related: BitGo secures VARA license amid regulatory crackdown
Already a global crypto hub
Dubai and the UAE have attracted some of the biggest global crypto companies, in part due to their regulatory environment and the potential to draw in investors. In July, The Open Network (TON) stirred controversy by claiming that it was in the “early stages of development” with a licensed partner to explore the creation of a UAE Golden Visa, allowing investors to spend $100,000 for a pathway to residency.
Bybit suffered a massive hack at the hands of the North Korean-affiliated Lazarus Group in February. The attack, which resulted in more than $1.4 billion worth of Ether (ETH) being stolen, is one of the largest in the history of the industry.
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