Virtual assets platform, Bybit, has announced the relocation of its global headquarters from Singapore to Dubai, just two weeks after the emirate approved a new Virtual Asset Regulation Law to formalise activity in the sector and to ensure investor protection and transparency.
Additionally, Bybit has secured in-principle approval to conduct services in the United Arab Emirates (UAE).
Dubai’s new framework caters to both the regulatory clarity advocated by the industry and investor protection, Ben Zhou, co-founder and CEO of Bybit, told FinanceAsia.
“The commitment of the regulators here in Dubai is what has drawn us to anchoring our presence here,” he added, calling the UAE a “pioneer” in virtual asset innovation.
The new law establishes the Dubai Virtual Assets Regulatory Authority (VARA) as the primary regulator for virtual currencies, which it defines as “digital representations of value which can be digitally traded, transferred, or used as an exchange or payment instrument, or for investment purposes”.
Cryptocurrency players must obtain authorisation from VARA to carry out virtual asset activities and must also establish a presence in Dubai, in order to obtain it.
Dubai’s new law has also attracted peer cryptocurrency, Crypto.com, to set up a regional hub in Dubai.
Besides the new regulation, Dubai’s international talent pool, financial and physical infrastructure, and status as a bridge between Europe and Asia, contributed to Bybit’s decision to move its headquarters, Zhou explained.
However, he stressed that the move did not affect the company’s global standing, and that the firm would maintain offices in Asia and elsewhere.
The new Dubai headquarters office is expected to commence operations in early April, the announcement said, adding that the company had started the process of transferring existing teams and adding new talent in Dubai. The licence covers Bybit’s full spectrum of virtual assets businesses, Zhou noted, declining to comment on the target team size for Dubai, nor what percentage of its Singapore staff will be expected to relocate.
Bybit’s services include online spot and derivatives trading, mining and staking products, and an NFT marketplace.
With the new law, Dubai joins Singapore in the run to become a global crypto centre. The Monetary Authority of Singapore has been at the forefront of virtual currency regulation, recently curtailing advertising of cryptocurrency services to the general public.
On how he anticipates virtual asset regulation to evolve in Dubai and elsewhere, Zhou told FA, “In most parts of the world, regulations will continue to play catch-up with fintech innovations.”
He highlighted marked differences in financial market readiness and adoption between regions. “Even within MENA (the Middle East and North Africa), the degrees of capital market maturity vary, and digital assets service providers address a diversity of customer needs in different markets.”
For example, regulations in the Gulf Cooperation Council (GCC) region, he suggested, will focus on addressing opportunities for cheaper and more efficient remittances, given the number of international workers there. Elsewhere, the focus may be on institutional clients and investors. Blockchain technology also has the potential to globalise and streamline know-your-customer (KYC) and anti-money laundering (AML) processes from an operational perspective, he added.
Bybit, established in March 2018, claims to be the third most digitally visited virtual assets platform. In May 2021, it reached a peak daily trading volume of $76 billion. It recently signed a multi-year sponsorship with Formula 1 team, Oracle Red Bull Racing.
In March, FA covered a new sustainability initiative by Bybit in India.
