Dubai-based cryptocurrency exchange Bybit has recently acquired a Minimum Viable Product (MVP) preparatory license from Dubai’s Virtual Assets Regulatory Authority (VARA). However, the license remains “very restricted,” according to Bybit CEO Ben Zhou. As it stands, Bybit can only serve a limited set of accredited investors. Nonetheless, Bybit is diligently working to obtain a full market product (FMP) license, which would enable the company to cater to a broader range of clients within the United Arab Emirates.
With a FMP license in hand, Bybit plans to run a full-scope virtual assets exchange, offering an array of services such as crypto lending, payments, investment, and more. Zhou highlighted the proactive measures taken by Dubai and the UAE in providing regulatory clarity and advocating for investor protection, creating an attractive environment for businesses of all sizes.
In recent times, Bybit has been actively expanding its global reach, obtaining licenses to operate as an exchange and custody service in Cyprus and receiving pre-approval in Kazakhstan. The company is also paying close attention to regulatory developments in key jurisdictions like the United Kingdom, Hong Kong, and the European Union.
Despite the efforts to expand its presence and offer services to customers worldwide, it’s vital to note that the company still faces hurdles and limitations in certain regions. Bybit’s MVP license in Dubai, although a step in the right direction, underscores some of the challenges that cryptocurrency companies may face in terms of regulatory restrictions.
While some authorities, like Kazakhstan and Cyprus, may be more welcoming of cryptocurrency operations and grant full licenses, other regions could impose limitations that may hinder growth. This disparity in regulatory approaches warrants ongoing attention, as it could impact investors and businesses alike.
In conclusion, Bybit’s latest license acquisition highlights both the achievements and areas of improvement in the cryptocurrency regulatory space. With authorities around the world adopting varying levels of openness, companies must adapt and adhere to the regulatory frameworks in place while advocating for clear, consistent, and favorable policies for the industry.
Source: Cointelegraph
