TL;DR:
- The Virtual Assets Regulatory Authority (VARA) of Dubai granted Bybit Fintech FZE a full license to operate spot exchange services.
- The authorization excludes crypto derivatives, a segment where Bybit is seeking additional permissions.
- The platform adds six licenses and formal permits in 2026 following prior approvals in the EU, Cayman Islands, Indonesia, South Africa, and El Salvador.
Finally, this Thursday, October 22, the VARA license in Dubai was granted to Bybit. Thanks to this permit, the local entity will be authorized to provide retail and institutional trading operations exclusively in the spot market.
The regulatory body issued the operating license in the name of Bybit Fintech FZE. Moving forward, the subsidiary holds the legal authority to process direct buy and sell orders between crypto asset pairs and fiat currencies within the local framework.
The administrative resolution establishes a concrete operational scope. The authorization covers exchange activities under the Virtual Asset Service Provider (VASP) category, excluding the trading of derivative products, futures contracts, and financial options.
Representatives from Bybit confirmed plans to seek an expansion of scope before local authorities. Company executive Peter Loo stated that the firm plans to request supplementary authorizations to integrate derivative instruments. Global volume figures from the exchange suggest that derivatives represent a dominant share of its international business.
For his part, Chief Executive Officer Ben Zhou noted that the company will maintain technical compliance programs aligned with the standards of the United Arab Emirates. The firm established its international corporate headquarters in Dubai during 2022. The recent ruling caps a process formally initiated in September 2024, when VARA granted conditional preliminary approval.
VARA’s Supervisory Framework and the Multi-Jurisdictional Strategy
The Virtual Assets Regulatory Authority of Dubai began operations in 2022 using a modular framework. This structure classifies companies into specific verticals such as custody, brokerage, lending, and exchange services, requiring independent technical audits for each vertical.
The derivatives sector enforces stricter capital and risk safeguards. Regulator reports indicate that offering leverage requires real-time liquidation mechanisms, segregated proof-of-solvency schemes, and specific user financial suitability requirements.
The Dubai approval forms part of an ongoing international rollout. So far in 2026, Bybit has formalized registrations across the European Union through its Austrian division, as well as in the Cayman Islands, Indonesia, South Africa, and El Salvador.
Analysis from BloomingBit suggests that temporarily excluding derivatives trading volume could limit the immediate financial impact on the firm’s balance sheet in the Middle East. The report adds that systematically securing registrations in emerging markets represents an effort to mitigate exposure to cross-border legal challenges.
Broad crypto asset liquidity saw isolated pullbacks over the past week. In the 24-hour period of October 22, 2026, total cryptocurrency market capitalization stood at $2.79 trillion, reflecting a 2.45% contraction. Meanwhile, Bitcoin traded near $81,800.
Technical analysts from Bitunix point out that macroeconomic factors, such as US Treasury yields and potential interest rate pressures, could temper the influx of fresh institutional capital into the spot market. Despite this macro climate, retail exchange operations in the UAE maintain a solid liquidity base supported by favorable local tax policies.
The next formal step for Bybit Fintech FZE will involve submitting margin requirements, reserve disclosures, and risk management manuals to apply for the derivatives license, with technical review by VARA committees scheduled for the first quarter of 2027.
