Cryptocurrency exchange Bybit has received In-Principle Approval (IPA) from the Securities & Commodities Authority (SCA) of the United Arab Emirates to set up as a Virtual Asset Platform Operator.

The approval, dated February 18, 2025, comes shortly after the company reportedly lost over $1.4 billion in liquid-staked Ether and MegaETH in a security breach.

Bybit Nears UAE License for Crypto Operations

The IPA is a preliminary regulatory approval that allows Bybit to move closer to obtaining a full operational license in the UAE. The company said the license would enable it to offer digital asset services to both retail and institutional clients in the region.

Bybit described the UAE as a key financial hub with regulatory frameworks supporting cryptocurrency and blockchain adoption. The company stated that it follows global compliance standards, including Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) protocols.

Gained Regulatory Approvals in Jurisdictions

Bybit has secured regulatory approvals in several regions, including India, Georgia, Kazakhstan, and Turkey. The company said these approvals align with its strategy to expand its services while meeting regulatory requirements across jurisdictions.