Global derivatives crypto exchange Bybit has secured a Minimum Viable Product (MVP) license in Dubai. Bybit FinTech FZE, a branch of Bybit operating in the Middle East, announced yesterday (Tuesday) that the exchange has obtained the license following approval by the the Virtual Asset Regulatory Authority (VARA).
The preliminary license permits Bybit to offer cryptocurrency services to a small group of customers in Dubai for now. However after the full authorization, it can spread its services to customers in other parts of the United Arab Emirates (UAE).
Bybit is a crypto derivatives exchange that offers services to a global customer base. Created in 2018, the exchange currently serves over 10 million customers worldwide, and is known for its ease of use and low trading fees. It also provides services such as peer-to-peer trading, spot trading and other important services offered by other top cryptocurrencies.
Bybit had in April moved its global headquarters to Dubai. At the time, it had no license to operate in the region. This MVP license therefore is establishing the exchange in Dubai, with potential for expansion to other parts of the country. Bybit is one of the fastest growing exchanges worldwide, which makes it a great fit for the UAE.
UAE Attracting Crypto Exchanges
The UAE is one of the most crypto-friendly countries in the world currently. The country has attracted most top crypto exchanges and is still doing so because of its regulatory approach to cryptocurrencies. The regulatory body, VARA, has drafted clear regulations for the crypto industry, making it attractive to cryptocurrency companies.
The country has clearly shown its willingness to pursue crypto innovation and allow the crypto industry to thrive as confirmed by Bybit CEO Ben Zhou.
“We would like to express our gratitude to VARA for their careful consideration of our application and for granting us the MVP Preparatory License. This is a crucial step forward for Bybit in the UAE, as Dubai plays a pioneering role in advancing the world’s development of financial innovation and digital assets,” Zhou said in a statement.
“We consider the receipt of this license to be a significant milestone that acknowledges the hard work, dedication, and strong commitment to compliance exhibited by our team,” he added.
The approach of the UAE is quite different from those of other countries such as the US. Crypto exchanges like Binance have been under intense pressure in the US as the securities and exchange commission (SEC) brought a sweeping wave of crackdown in the country.
Coinbase, an indigenous US exchange is also in court to defend itself against allegations of securities laws violations by the SEC. Crypto exchanges like Bittrex have since moved out of the country in search of more friendly environments since the US has become so hostile.
Most of the companies fleeing the US are moving to places like Hong Kong and the UAE where the environment is more fair.
Bybit has Licenses in Other Countries
Prior to securing this preliminary MVP license in Dubai, Bybit had secured licenses in other countries. The most recent is the license from Cyprus which allows it to offer crypto and custody services to customers in Cyprus.
It had earlier secured another license in Kazakhstan, another crypto-friendly country that also recently issued an operational license to Binance.