By Enoch Mutembei
ByBit, a global crypto exchange, has taken a significant step forward by securing provisional approval for a Virtual Asset Service Provider (VASP) license in Dubai. On September 16, ByBit announced that Dubai’s Virtual Assets Regulatory Authority (VARA) granted the license after a comprehensive review. This is the initial stage of obtaining a full operating license to conduct crypto-related services in the region.
The review process was thorough, ensuring that ByBit meets the regulatory standards established by Dubai’s crypto authorities. This approval showcases the company’s dedication to complying with Dubai’s regulations and expanding its operations in the Middle East.
Dubai’s Favorable Environment for Crypto Businesses
Helen Liu, Chief Operating Officer of ByBit, highlighted Dubai’s strategic advantages for crypto businesses. She noted that Dubai’s “strategic location, progressive policies, and innovation-driven environment” make it a prime market for digital currencies and blockchain-based ventures.
Liu further praised the city’s robust regulatory framework, adding that Dubai’s strong commitment to becoming a global blockchain capital offers an excellent environment for ByBit to expand its crypto operations. ByBit’s provisional license approval represents another move in the city’s broader ambitions to position itself as a leader in the global crypto market.
ByBit first set up its international headquarters in Dubai in 2022 and has since been actively involved in several initiatives aimed at promoting the crypto and web3 sectors. These initiatives reflect the city’s growing influence as a hub for blockchain innovation.
Global Expansion Efforts Gain Momentum
ByBit’s approval in Dubai comes as part of a broader global expansion strategy. Earlier this month, the exchange received formal consent from the Astana Financial Services Authority to pursue a VASP license in Kazakhstan. In addition, ByBit recently secured a VASP license in Argentina from the General Inspectorate of Justice, allowing it to provide crypto services in the country.
These recent approvals signal ByBit’s determination to strengthen its global presence and cater to emerging markets. The exchange is positioning itself as a key player in promoting the adoption of cryptocurrencies and blockchain technology worldwide.
Dubai’s Crypto-Friendly Legal Framework
Dubai continues to establish itself as a global leader in the cryptocurrency industry with a series of recent moves. On September 9, the United Arab Emirates’ Securities and Commodities Authority signed an agreement with VARA to enable licensed crypto exchanges to operate across the country. This agreement is a milestone in the country’s efforts to facilitate cryptocurrency adoption on a national level.
Furthermore, Dubai’s Court of First Instance recently made a landmark ruling, recognizing cryptocurrency as a valid form of salary payment. The court’s decision, which involved unpaid wages in EcoWatt tokens, mandated the employer to pay the salary in tokens, affirming the legitimacy of cryptocurrencies in employment contracts.
This ruling sets a precedent for the use of crypto in formal agreements, further solidifying Dubai’s pro-crypto stance.
ByBit’s recent approval and Dubai’s legal advancements are pivotal in creating an environment where crypto businesses can thrive, paving the way for more developments in the blockchain space.
