Bybit wins Dubai VARA spot licence, derivatives need separate nod

Bybit’s Dubai subsidiary, Bybit Fintech FZE, has received a Virtual Asset Service Provider licence from the emirate’s Virtual Assets Regulatory Authority covering spot trading, the exchange announced on October 22, 2026, as reported by Blockonomi. The permission does not extend to futures or other derivatives, which require a separate VARA decision.

Crypto.news, citing the company’s October 21 announcement and VARA’s public register, reported that the licence authorises Exchange Services under reference VL/26/10/003 and lets the firm serve retail, qualified and institutional investors. The register records a licence issue date of June 20, 2026, while the public announcement came in October; neither outlet explained the gap.

Key facts

• Bybit Fintech FZE holds VARA licence VL/26/10/003 for Exchange Services, limited to spot trading.
• VARA’s register lists June 20, 2026, as the issue date; Bybit announced the approval on October 22 (Crypto.news).
• Chief legal and compliance officer Peter Loo said the exchange hopes to add derivatives to its licensed activities once approvals are granted.
• CEO Ben Zhou cited five licences and regulatory clearances in 2026 across the EU, Cayman Islands, Indonesia, South Africa and El Salvador.
• Bybit established its international headquarters in Dubai in 2022 and received preliminary VARA approval in August 2024.

Spot first, derivatives later

The licence lets Bybit run regulated spot markets under Dubai’s rules but does not permit leveraged futures products inside the emirate. Bybit already offers derivatives to customers outside Dubai, and Loo described those products as a major part of the exchange’s global trading business. Bringing them to Dubai would require VARA approval covering matters such as client eligibility, margin requirements and supervisory intervention during market stress. Neither outlet reported a target date for an application.

Dubai’s VARA oversees virtual asset firms in the emirate outside the Dubai International Financial Centre, which has its own regulator. Robinhood received separate approval from the DIFC’s Dubai Financial Services Authority to offer retail trading and custody, including bitcoin, with a regional launch set for 2027, according to Bitcoinmagazine.

Licensing wave in the emirate

Payward, the parent of Kraken, recently obtained full VARA approval, while Flowdesk secured broker-dealer authorisation in August, Crypto.news reported. Kraken plans to add UAE dirham trading pairs and local currency deposits and withdrawals. Bybit’s national-level approval from the UAE Securities and Commodities Authority in October 2025 came through a separate process from the VARA licence.

Why it matters

The approval gives Bybit a regulated footing for spot trading in the city where it bases its international operations, four years after setting up there. It does not widen what the exchange may sell to Dubai customers, so the derivatives question remains the one that could materially change its local revenue mix. The timing also lands as regulators elsewhere tighten scrutiny of client assets: Ireland’s central bank fined a Coinbase unit €3.25 million over customer fund and outsourcing controls.

What to watch

The next marker is whether Bybit files for derivatives permission with VARA, and whether the regulator attaches conditions on margin and client protection. Zhou has also framed the 2026 licence run as a multi-market push, so further approvals in the named jurisdictions are worth tracking.

Disclaimer: This article is for information only and is not investment, financial or trading advice. Cryptocurrency prices are highly volatile. Always do your own research.

Sources: Blockonomi, Crypto.news, Bitcoinmagazine