Bybit Receives In-Principle Approval to Operate in UAE

Highlights:

• Bybit receives in-principle approval in UAE, advancing toward full operational licensing in the region.
• The approval positions Bybit to expand its digital asset services in the UAE.
• Bybit continues to secure global regulatory approvals while addressing security challenges.

Bybit, the second-largest cryptocurrency exchange, recently received in-principle approval (IPA) from the United Arab Emirates Securities and Commodities Authority (SCA). This kind of authorization brings Bybit closer to a full operative license as a Virtual Asset Platform Operator. It will enable the exchange to meet the needs of retail and institutional users in the region in a compliant and safe manner.

BYBIT LOCKS IN UAE APPROVAL AMID SECURITY COMEBACK

Bybit just secured in-principle approval from the UAE’s SCA—setting the stage for a full operational license; this strengthens its position in the Middle East, where it’s already making regulatory moves.

It recently regained… pic.twitter.com/RJ5cuQqirw

— IBC Group Official (@ibcgroupio) February 27, 2025

Bybit Strengthens Regulatory Standing in the UAE

The approval, dated February 18, is significant for Bybit as it will enable the company to operate in accordance with the UAE’s supportive legislation regarding crypto assets. This license allows Bybit to offer digital asset services to retail and institutional customers. Due to favorable regulatory frameworks, the UAE remains among the leading destinations in the world for cryptocurrency firms. 

Ben Zhou, the co-founder and CEO of Bybit, further noted that Bybit will cooperate with the regulators and integrate it to maintain a transparent trading environment. The firm also complies with the AML and CFT policies to enhance its compliance with regulatory requirements.

The UAE’s friendly approach towards crypto firms can be seen in the recent developments. On the 24th of February, Circle’s USDC and EURC stablecoins were authorized by the Dubai Financial Services Authority (DFSA), marking a major advancement in stablecoin regulation. Moreover, Crypto.com obtained its full license for operations in Dubai from the Virtual Asset Regulatory Authority (VARA).

USDC & EURC are the first stablecoins recognized by the Dubai Financial Services Authority (DFSA)!

This reinforces Circle’s position as the only major global stablecoin issuer compliant with European Union (MiCA) regulations and Canada’s new listing rules.

This recognition… pic.twitter.com/QduRbNPpLo

— Circle (@circle) February 24, 2025

Bybit Expands Globally Amid UAE Approval

Bybit’s approval in the UAE corresponds to its worldwide expansion strategy. The exchange has continued its efforts to obtain licenses in key markets such as India, Georgia, Kazakhstan, and Turkey.

On 25 February, Bybit announced its return to the Indian market after providing registration with the Financial Intelligence Unit of India. It resumed full trading operations after paying a fine of $1.06 million for carrying out business without valid registration.

Besides the Middle East & India, Bybit has been establishing a presence in Kazakhstan and Turkey as it continuously enhances its global regulation efforts. However, the exchange has not been immune to regulatory challenges. For instance, the Financial Services Agency in Japan recently demanded the leading app stores delist Bybit due to unlawful operations.

Bybit Secures Approval Days Before $1.4 Billion Hack

The development of Bybit UAE’s regulatory approval comes at a time of a major security issue. Just after receiving the IPA, the exchange was hacked and lost $1.4 billion between its cold and hot wallets.

Bybit ETH multisig cold wallet just made a transfer to our warm wallet about 1 hr ago. It appears that this specific transaction was musked, all the signers saw the musked UI which showed the correct address and the URL was from @safe . However the signing message was to change…

— Ben Zhou (@benbybit) February 21, 2025

According to a recent FBI report, the attack was coordinated by North Korea’s Lazarus Group. The hacker group reportedly laundered the money, liquidating the funds in Bitcoin and other cryptocurrencies and distributing them across multiple wallets. The research conducted indicated that the incident was rooted in weaknesses in Safe Wallets’ structure and not in Bybit’s infrastructure.

In response to the attack, Bybit initiated a crisis management program and offered a $140 million bounty in rewards for the stolen funds. They stated that all customers’ funds and assets were safe and fully backed.