Bybit secures full VARA license for spot trading in Dubai

Bybit Fintech FZE, the exchange's Dubai entity, holds a virtual asset service provider license from Dubai's Virtual Assets Regulatory Authority for exchange services including spot trading, and is permitted to serve retail, qualified and institutional investors, the regulator's public register shows. The entry, reference VL/26/10/003, lists the licence as issued on Oct. 20, 2026, with an active status and a registered office at One Central in the Dubai World Trade Centre.

Bybit announced the licence on Oct. 22, upgrading an earlier in-principle approval that did not let the entity serve customers. A Bybit spokesperson told Cointelegraph that the previous approval was non-operational. In-principle approval holders are prohibited from initiating operations or servicing clients until a full licence is issued, in line with VARA's published register rules.

The licence does not mean Bybit's Dubai entity can open for trading immediately. The company must still complete VARA's launch process and meet operational requirements before starting spot trading services, and it did not provide a launch date, Cointelegraph reported. Holding an active entry on the register confirms the licence is granted; it does not by itself start commercial operations. The spokesperson declined to comment on how the VARA licence differs from an earlier federal approval or whether that approval had permitted Dubai services.

That federal counterpart came through the United Arab Emirates' Securities and Commodities Authority in October 2025. The service restrictions on the SCA-licensed entity, Bybit Virtual Asset Platform Operator LLC, exclude Dubai, according to Cointelegraph. VARA governs virtual asset activity across Dubai's mainland and free zones, except within the Dubai International Financial Centre, which runs its own regulatory system, the register's own note states.

Bybit first received provisional approval from VARA in 2024 and spent the intervening period completing requirements for a full operating licence. Both crypto.news and TokenPost, writing on Oct. 23, observed that the register carried a June 20, 2026 issue date at the time of the announcement, four months earlier than the Oct. 22 reveal. The register entry read on Oct. 26 lists Oct. 20, 2026. Neither Bybit nor VARA has explained the difference. Crypto.news dated the underlying company announcement Oct. 21, while coverage of it appeared over the following day.

Derivatives remain a separate step. The licence covers spot exchange services only, and Bybit hopes to expand its licensed activities to include derivatives subject to the necessary regulatory approvals, Peter Loo, Bybit's chief legal and compliance officer, said in the company announcement as quoted by crypto.news. Dubai maintains distinct requirements for derivatives trading covering client eligibility, risk management and financial safeguards, and a spot exchange licence does not by itself grant permission to offer leveraged futures products. Bybit has not said when it plans to apply for derivatives permission.

"Dubai has made significant progress in building a regulatory environment for virtual assets, and we are pleased to take this next step in our journey here," Zhou said in the announcement. Loo said a healthy digital asset market needs strong oversight, sound risk management and a commitment to protecting users.

Bybit established its international headquarters in Dubai in 2022. Zhou wrote on X that Dubai has been important to the company's operations since then and called the VARA licence "another step in building for the long term." In an October keynote, he highlighted five additional licences and regulatory approvals obtained in 2026 across the European Union, the Cayman Islands, Indonesia, South Africa and El Salvador. The company has also joined local blockchain initiatives, industry partnerships and knowledge-sharing programs since establishing its regional presence.

Kraken's parent company, Payward, received full Dubai approval in October, while Flowdesk obtained broker-dealer authorization in August, a sign of how crowded the emirate's licensing pipeline has become. Bybit claims more than 80 million users worldwide, a global figure that does not establish how many customers will ultimately access services through its Dubai-licensed entity.