- Bybit advances toward full operational status in UAE despite recent security challenges.
- The UAE’s Securities and Commodities Authority has granted in-principle approval for virtual asset operations.
- The exchange faces expansion hurdles following a $1.4 billion security breach.
- UAE continues to position itself as a major cryptocurrency hub in the Middle East.
- Regulatory milestone represents significant progress in Bybit’s global expansion strategy.
Cryptocurrency exchange Bybit is moving forward with its Middle Eastern expansion plans, securing in-principle approval from the UAE’s financial regulators despite recently experiencing a substantial security breach. The development marks a crucial step toward obtaining comprehensive operational authorization in the region.
The UAE’s Securities and Commodities Authority (SCA) has granted preliminary approval for Bybit to establish a virtual asset platform operator, according to the exchange’s official announcement on February 27.
This regulatory advancement comes at a challenging time for the exchange, which recently suffered a $1.4 billion security incident. The hack ranks among the largest in cryptocurrency history, highlighting the ongoing security challenges faced by digital asset platforms.
The UAE has emerged as a significant cryptocurrency hub, with its regulatory framework attracting major industry players. The country’s virtual asset regulations, introduced in 2023, have established clear operational guidelines for cryptocurrency businesses, making it an attractive jurisdiction for exchanges seeking regulatory clarity.
A full operational license would enable Bybit to offer comprehensive cryptocurrency services in the UAE, including trading, custody, and other digital asset-related activities. This development aligns with the UAE’s vision to become a global leader in cryptocurrency innovation while maintaining robust regulatory oversight.
The timing of this regulatory milestone demonstrates the UAE’s commitment to fostering cryptocurrency business growth, even as the industry faces global challenges and increased scrutiny from international regulators.
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