The cryptocurrency landscape in the Middle East continues to evolve rapidly, with major exchanges seeking regulatory clarity and compliance in key financial hubs. A significant development in this space occurred when Bybit, one of the world’s leading digital asset platforms, received In-Principle Approval (IPA) from the Securities & Commodities Authority (SCA) of the United Arab Emirates (UAE) to establish a Virtual Asset Platform (VAP). The approval, granted on February 18, 2025, marks a pivotal milestone in Bybit’s global expansion strategy and reinforces the UAE’s growing reputation as a forward-thinking jurisdiction for blockchain innovation.
This IPA brings Bybit one step closer to obtaining its full operational license, allowing it to legally serve both retail and institutional clients across the UAE. As regulatory frameworks become increasingly critical in shaping user trust and market stability, this move underscores Bybit’s commitment to compliance, security, and long-term sustainability in high-potential markets.
Advancing Compliance in a Strategic Market
The UAE has emerged as a magnet for crypto businesses due to its clear regulatory environment, business-friendly policies, and strategic geographic location. The SCA’s Virtual Asset Regulatory Framework provides a structured pathway for digital asset platforms to operate transparently and securely. By securing IPA under this framework, Bybit demonstrates its alignment with international standards, including Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) protocols.
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This regulatory progress is not isolated—it follows Bybit’s existing approvals in other Middle Eastern jurisdictions and reflects a broader trend of institutional-grade platforms prioritizing legitimacy over rapid, unregulated growth. With over 60 million global users, Bybit’s move into the UAE positions it to capture growing demand from investors seeking compliant access to digital assets.
Strengthening Trust Through Regulatory Alignment
Regulatory approval is more than a legal requirement—it’s a signal of trust to users, partners, and traditional financial institutions. Bybit’s engagement with the SCA illustrates a proactive approach to working within formal financial systems rather than operating on their fringes.
Ben Zhou, Co-founder and CEO of Bybit, emphasized the importance of this achievement:
“We are honored to have received the IPA from SCA. This approval marks a crucial step in our journey to providing secure and transparent crypto trading solutions. Bybit remains dedicated to working hand-in-hand with regulators to foster a compliant and innovative digital asset ecosystem for both retail and institutional investors in the UAE.”
Such statements reflect a maturing industry where collaboration with regulators is seen not as a barrier but as a foundation for sustainable innovation.
Expanding Footprint Across Global Jurisdictions
Bybit’s efforts in the UAE are part of a larger global strategy to secure regulatory approvals in key markets. The exchange is actively progressing toward compliance in regions including India, Georgia, Kazakhstan, and Turkey, among others. Each license strengthens Bybit’s ability to offer localized services while maintaining uniform standards of security and user protection.
This multi-jurisdictional approach allows Bybit to adapt to regional requirements without compromising its core mission: building an open, accessible, and secure Web3 ecosystem. With a strong focus on Web3 infrastructure, Bybit partners with leading blockchain protocols to drive on-chain innovation and expand decentralized finance (DeFi) adoption.
Bridging TradFi and DeFi with Secure Infrastructure
One of Bybit’s defining strengths lies in its ability to bridge traditional finance (TradFi) and decentralized finance (DeFi). Through robust custody solutions, intuitive trading interfaces, and advanced blockchain tools, the platform empowers users—from novice traders to experienced developers—to participate confidently in the digital economy.
Bybit’s technology stack supports diverse marketplaces, including spot trading, derivatives, staking, and NFTs, all built on a foundation of security and reliability. As the line between traditional and digital finance blurs, platforms that offer seamless integration will lead the next phase of financial evolution.
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The UAE's Role in Shaping the Future of Crypto
The UAE’s progressive stance on virtual assets has positioned it as a leader in the global crypto economy. Dubai’s Virtual Assets Regulatory Authority (VARA) and Abu Dhabi’s Financial Services Regulatory Authority (FSRA), alongside the federal-level SCA, have created a layered but coherent regulatory ecosystem that attracts top-tier exchanges and fintech innovators.
Bybit’s entry into this regulated environment contributes to the region’s goal of becoming a hub for responsible blockchain innovation. It also sets a precedent for other exchanges looking to establish compliant operations in emerging markets.
Core Keywords Integration
Throughout this development, several core keywords naturally emerge as central to understanding Bybit’s strategic direction and market impact:
- Bybit
- UAE
- In-Principle Approval
- Virtual Asset Platform
- SCA
- crypto exchange
- regulatory compliance
- Web3
These terms reflect both the technical and commercial dimensions of the announcement while aligning with common search queries related to crypto regulation, exchange licensing, and regional market expansion.
Frequently Asked Questions
Q: What is In-Principle Approval (IPA)?
A: IPA is a preliminary authorization granted by a regulatory body—such as the UAE’s SCA—indicating that a company meets initial requirements to operate as a Virtual Asset Platform. It is typically followed by final checks before full licensing.
Q: Does Bybit already have a full license in the UAE?
A: As of February 2025, Bybit has received In-Principle Approval and is in the final stages of obtaining its full operational license from the SCA.
Q: How does this affect users in the UAE?
A: Once fully licensed, UAE-based users will gain access to a regulated, secure platform offering a wide range of digital asset services, including trading, staking, and Web3 tools.
Q: Is Bybit regulated elsewhere?
A: Yes. Bybit holds or is pursuing regulatory approvals in multiple jurisdictions globally, including India, Georgia, Kazakhstan, and Turkey, demonstrating its commitment to global compliance.
Q: What services will Bybit offer in the UAE?
A: Upon full licensing, Bybit plans to offer retail and institutional clients access to spot and derivatives trading, custody solutions, staking, and Web3 ecosystem tools.
Q: Why is the UAE important for crypto companies?
A: The UAE offers a clear regulatory framework, tax advantages, political stability, and strategic access to both Eastern and Western markets—making it ideal for crypto businesses aiming for legitimacy and growth.
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Final Thoughts
Bybit’s receipt of In-Principle Approval from the SCA represents more than just corporate growth—it symbolizes the maturation of the digital asset industry. As governments worldwide seek to balance innovation with investor protection, exchanges that prioritize compliance will be best positioned to thrive.
With its eyes set on full licensing in the UAE and continued expansion across regulated markets, Bybit is building a future where crypto is not only accessible but also trustworthy. In doing so, it contributes to a broader vision: a decentralized financial system that operates securely within the global economy.