What happened? Bybit became the first crypto exchange to secure a full SCA Virtual Asset Platform Operator License.
Bybit received the UAE Securities and Commodities Authority’s Virtual Asset Platform Operator License, giving it full regulatory approval to operate on the UAE mainland. The license allows Bybit to offer regulated trading, custody, brokerage and fiat conversion services across the country and complements its provisional VARA coverage in Dubai. The approval arrived as Bybit pushes global expansion despite a major $1.4 billion hack earlier this year.
Who does this affect? Retail and institutional crypto users in the UAE, other exchanges, and regional crypto businesses will all feel the impact.
Retail and institutional clients in the UAE get access to regulated services from Bybit on the mainland, which can increase trust and onshore activity. Other exchanges and crypto firms now face pressure to obtain local licenses and manage overlapping SCA and VARA rules if they want to compete here. Regulators, investors, and venture funds active in the region will also be affected as firms reorder operations to follow the clearest regulatory pathways.
Why does this matter? It shifts market dynamics by boosting UAE’s appeal as a regulated crypto hub and changing where capital and liquidity flow.
Having a major exchange like Bybit licensed by the SCA strengthens the UAE’s position as a go-to jurisdiction, likely drawing more trading volume, institutional capital, and product launches to the region. That extra regulatory clarity should improve market confidence and liquidity in UAE venues, making it easier for firms and investors to operate onshore. At the same time, overlapping frameworks and increased competition mean we could see consolidation, migration to licensed platforms, and short-term repricing as markets adjust to new risk and opportunity.