After obtaining licenses in Cyprus and Kazakhstan and having exited Canada, the cryptocurrency exchange Bybit continues its organizational redevelopment. Since announcing in April that it established its main global headquarters in Dubai, it has now obtained one of the local licenses.

Although Bybit has not received permission to start virtual asset operations in the Emirate of Dubai, it has made considerable progress towards securing operational approval.

Bybit Acquires MVP License in Dubai

Bybit FinTech FZE, a branch of Bybit operating in the Middle East, announced yesterday (Tuesday) that the Dubai-based Virtual Assets Regulatory Authority (VARA) granted it a preliminary Minimum Viable Product (MVP) licence.

Under this license, however, Bybit cannot provide crypto trading services. It will only be able to fully present its offering to customers from the United Arab Emirates (UAE) after it receives the full authorization

Although Bybit's current operational capabilities in the country are 'very restricted', the exchange's CEO, Ben Zhou, looks positively to the future and claims that VARA wants to support innovation and entrepreneurship in the cryptocurrency sector.

When the exchange obtains a full license, it wants to provide all possible cryptocurrency services permitted by local law. VARA allows companies to provide services in the areas of advisory, trust, loans, payments, investments, money transfers, and brokerage.

“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. “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.”

Bybit received in-principle approval to conduct business in the UAE more than a year ago. Yet in March 2022, it obtained in-principle approval to operate in this region. In April 2023, it also decided to move its main headquarters there. Currently, it is located in One Central at the Dubai World Trade Center, occupying a 16,000-square-foot open space with views of the city's iconic landmarks.

Along with the information about changing the main headquarters, Bybit reported an increase of 50% in its customer base.

Bybit Changes Its Regulatory Areas

As mentioned in the introduction, Bybit's recent moves clearly aim to change the exchange's existing regulatory environment. In addition to moving to Dubai and obtaining an MVP license, the exchange obtained permission to operate in Kazakhstan with certain limitations.

The country, which is associated with cryptocurrency enthusiasts mainly with cheap energy used by digital asset mines, is supposed to be a 'gateway' to the CIS region for the company. The CIS is a regional intergovernmental organization created after the collapse of the Soviet Union. It represents a lively market for the adoption of digital assets and is a promising center for cryptocurrencies.

Also, in May, Bybit decided to exit Canada, following its agreement with regulators. Since May 31, the exchange has no longer accepted new customers from Canada. "In light of recent regulatory development, Bybit has made the difficult but necessary decision to pause the availability of our products and services," the company commented in a statement published on May 30.

Earlier this week, the platform announced it had obtained a new license in Cyprus. According to the regulator's register, the license was granted to the Lithuanian company UAB Onlychain Fintech Limited in May 2023.

"This landmark is a testament to Bybit's commitment to adhering to robust regulatory frameworks while expanding our global presence. We look forward to bringing the Crypto Ark to Cyprus," Zhou commented.