Bybit experienced a $1.5 billion crypto hack in February, highlighting ongoing security challenges in the crypto industry.
The UAE's Securities and Commodities Authority has granted cryptocurrency exchange Bybit a virtual asset platform operator licence as the country seeks to establish itself as a global digital asset hub.
Bybit, one of the world's largest cryptocurrency exchanges by trading volume, claimed that it is the first crypto exchange to obtain the full licence from the SCA, according to a statement from the company on Friday.
The SCA is responsible for monitoring and regulating the UAE's financial markets,
This licence will allow Bybit to offer virtual asset trading, brokerage, custody and fiat conversion services to both retail and institutional clients across the UAE.
The exchange said it plans to expand its local footprint by establishing a larger regional operations centre in Abu Dhabi with more than 500 employees. It will also accelerate local hiring across compliance, operations and customer service and collaborate with regional partners on blockchain education and Web3 innovation programmes, according to the statement.
Bybit initially received its in-principle approval from the SCA in February.
"The UAE has emerged as a global leader in digital asset regulation, and this recognition underscores the strength of our security and governance standards," Ben Zhou, co-founder and chief executive of Bybit, said.
Many crypto exchanges with operations in Dubai are regulated under the Virtual Assets Regulatory Authority framework.
The SCA regulation has a wider scope as it applies to the UAE mainland and also covers entities outside Dubai's jurisdiction under Vara. ByBit also has a provisional licence under the Vara framework.
The approval is part of a broader pattern of regulatory developments for Bybit in 2025. In May, the exchange secured a Markets in Crypto Assets licence, a mandatory authorisation required for companies to operate in Europe. It also resumed full trading operations in India in September.
Bybit's acceptance by the UAE regulator comes amid intensifying global scrutiny of crypto exchanges following collapses and lawsuits that rocked the sector in 2022-2023. Unlike in the UAE, the industry faces hostile regulatory conditions in the US.
Competitors, such as Binance and OKX, have secured provisional or operational licences under Dubai's Vara regime.
Meanwhile, ByBit's global trading volumes have remained strong. The company, which was founded in 2018, serves a global community of over 60 million users.
However, the company suffered a $1.5 billion crypto hack in February in which 401,000 Ethereum was stolen. North Korea was responsible for the theft, the US's Federal Bureau of Investigation said.
The cryptocurrency industry has struggled with a spate of challenges and, increasingly, has become a target for cyber criminals who want to cash in on the lucrative sector that continues to grow in adoption.
About $2.2 billion was stolen from crypto platforms in 2024, data from blockchain company Chainalysis showed.