Bybit Could Expand UAE Services After SCA License, Amid Lingering Concerns Over $1.4 Billion Ether Hack

• Bybit secured a full Virtual Asset Platform Operator License from the UAE SCA

• License follows an in-principle approval and a prior non-operational license in Dubai’s VARA jurisdiction.

• Bybit’s regulatory approvals aim to restore trust after a major 2024 security breach attributed to Lazarus Group.

Bybit UAE license: full SCA approval allows Bybit to operate in the UAE under regulated status — learn what this means for users and regional crypto markets.

The license came eight months after the regulator granted the company in-principle approval, and a few weeks after Bybit secured a non-operational license for Dubai.

What is the Bybit UAE license and what does it allow?

The Bybit UAE license is a full Virtual Asset Platform Operator License granted by the Securities and Commodities Authority (SCA). It allows Bybit to offer its global products and services to UAE users under local regulatory oversight, aligning the exchange with UAE compliance, governance and consumer protection standards.

How did Bybit obtain this regulatory approval?

Bybit progressed from an in-principle approval to a full SCA license after submitting compliance documentation and meeting operational standards. The license follows a non-operational permit in Dubai from the Virtual Assets Regulatory Authority (VARA) and regulatory steps taken in Austria and India earlier in the year.

Why does the SCA license matter for customers and markets?

The SCA license formalizes Bybit’s ability to serve UAE-based customers with regulated trading, custody and platform services. It signals increased regulatory clarity for institutional and retail investors and may influence other exchanges seeking stable footholds in the UAE’s growing crypto hub.

When did Bybit receive approval and what preceded it?

Bybit received full approval from the SCA roughly eight months after initial in-principle approval and shortly after a non-operational VARA license in Dubai. Prior regulatory milestones include Austrian licensing in May and registration activity in India earlier this year.

What security and governance issues have shaped Bybit’s regulatory path?

Bybit suffered a major security incident in February when the Lazarus Group reportedly stole over $1.4 billion in Ether (ETH). That breach intensified scrutiny on exchange security and governance. Bybit’s CEO, Ben Zhou, has publicly emphasized the company’s investment in compliance and transparency as central to regaining market trust.

Frequently Asked Questions

How does the Bybit UAE license affect local traders?

UAE traders gain access to Bybit’s regulated product suite with oversight from the SCA, improving legal clarity and consumer protections while requiring standard compliance checks like AML and KYC.

What regulatory bodies are involved in UAE crypto oversight?

The main regulators are the Securities and Commodities Authority (SCA) and Dubai’s Virtual Assets Regulatory Authority (VARA); both coordinate on licensing frameworks and reciprocity agreements.

Key Takeaways

• Regulatory approval: Bybit received a full Virtual Asset Platform Operator License from the UAE SCA, enabling regulated operations in the UAE.
• Regional context: The approval follows a non-operational VARA license in Dubai and other international registrations, reflecting global expansion under compliance frameworks.
• Security & trust: Licensing comes after a major 2024 security breach; the decision underscores focus on governance, reporting and consumer protection.

Conclusion

The Bybit UAE license marks a significant regulatory milestone for the exchange and the UAE crypto market. Bybit’s full Virtual Asset Platform Operator License from the SCA strengthens its compliance posture and supports a regulated path for crypto services in the region. Expect phased onboarding of UAE users and continued regulatory engagement as the market evolves.

Published: 2025-10-09 — Updated: 2025-10-09 | Author: COINOTAG