Bybit Wins Dubai VASP License, but Derivatives Must Wait

TLDR

• Bybit secured a full Dubai VASP license covering spot cryptocurrency trading services.
• The exchange plans to expand into derivatives trading but must first obtain separate VARA approval.
• Bybit reported five additional licenses and regulatory approvals across international markets during 2026.
• Dubai continues licensing digital asset firms, with Kraken’s parent Payward receiving full regulatory approval.

Bybit announced on October 22 that its Dubai unit, Bybit Fintech FZE, received a Virtual Asset Service Provider (VASP) license for spot trading. Dubai’s Virtual Assets Regulatory Authority (VARA) has not approved the exchange for derivatives.

Bybit Eyes Derivatives After Spot License

The full approval allows the company to operate regulated spot markets under Dubai’s rules. It does not authorize futures or other derivatives, which require separate permission from the regulator.

Chief legal and compliance officer Peter Loo said Bybit wants to expand its permitted services. He described derivatives as a major part of the exchange’s global trading business.

The exchange already handles derivatives for customers outside Dubai. Those existing services do not permit Bybit to offer the same products within the emirate.

Loo said the company would keep working with VARA on wider approval. An October report on Ethereum derivatives trading listed Bybit among platforms with active futures positions. No Dubai derivatives launch date has been announced.

Dubai Approval Adds to Global Licensing Drive

Bybit established its international headquarters in Dubai in 2022. The regulator granted its local entity preliminary approval in August 2024, allowing it to complete its remaining operating requirements before securing a full license.

Chief executive Ben Zhou said the firm plans to develop its Dubai business within VARA’s standards. He cited the company’s work with local partners and the digital asset community.

Meanwhile, Kazakhstan moved to restrict access to six crypto exchange apps, including Coinbase. Its regulator said it planned to send court orders to app store operators.

For Bybit, entry into different markets requires local approval. Zhou cited five licenses and regulatory clearances across Europe, the Cayman Islands, Indonesia, South Africa and El Salvador this year.

Dubai Regulator Maintains Separate Rules

Payward, Kraken’s parent company, recently received full VARA approval. Kraken plans to introduce new trading pairs priced in UAE dirhams, alongside deposits and withdrawals in local currency.

The latest licensing developments come as financial regulators scrutinize how exchanges handle customer assets. Separately, in Ireland, Coinbase received a €3.25 million fine over customer funds and outsourcing controls.

VARA oversees licensed virtual asset businesses across Dubai, except within the Dubai International Financial Centre. Robinhood received separate approval from that district’s financial regulator to offer retail investment services.

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