Bybit, the world’s second-largest cryptocurrency exchange by derivatives volume, has secured a provisional license from Dubai’s Virtual Asset Regulatory Authority (VARA). This milestone comes two years after Bybit established its headquarters in Dubai, reinforcing the city’s growing reputation as a global crypto hub.

Helen Liu, Bybit’s Chief Operating Officer, emphasized that the license marks a pivotal moment in Bybit’s expansion strategy. She highlighted Dubai's strategic location, progressive regulations, and innovation-driven environment as key factors attracting crypto businesses and investors to the city.

Bybit’s provisional license currently allows the exchange to serve retail and institutional clients in Dubai, but the company continues to pursue a full operational license. This aligns with UAE regulators’ recent decision to permit Dubai-licensed virtual asset service providers to operate across the country.

Bybit's headquarters relocation to Dubai in 2022 and its renewed partnership with the Dubai Multi Commodities Crypto Centre (DMCC) underscore its commitment to the region. The exchange has transitioned from being an ecosystem partner to taking on an advisory role, reflecting its confidence in Dubai’s regulatory foresight in the emerging digital asset sector.

Dubai is rapidly establishing itself as a go-to destination for crypto and Web3 firms seeking favorable regulations. The city recently recognized cryptocurrency for salary payments under employment contracts, and the Central Bank of the UAE has approved new stablecoin licensing regulations. This favorable regulatory environment has already attracted other major players, including Binance and Chainalysis.

Bybit, with a 24-hour derivatives trading volume exceeding $15.8 billion, is positioning itself strategically in Dubai, aiming to capitalize on the city's ambition to become a global blockchain leader.