Bybit, one of the top cryptocurrency exchanges, has moved its headquarters to Dubai in the United Arab Emirates (UAE). The company has already received a license to operate since last year. The popular digital assets platform anchored the “Crypto Ark” at the Dubai World Trade Center as of April 17, 2023.
The move is not surprising since Dubai has been labeled as a crypto oasis by many crypto enthusiasts. The state has a progressive approach to dealing with digital assets compared to other jurisdictions. Dubai has decided to become the region’s hub for virtual assets by proactively encouraging innovations instead of stifling them. This approach is the exact opposite of how the U.S. is trying to handle what it deems as a risky asset class.
What Influenced Bybit?
In a CNBC interview last year, Ben Zhou, Bybit’s CEO, announced the company’s plan to relocate its headquarters from Singapore to Dubai. He expressed his surprise at the warm welcome received from the Emirati State and believes that the UAE is signaling to the world that it is ready to become a crypto hub. This positive development has prompted the exchange to move a significant portion of its operations to the region. The interview can be found below.
Ben Zhou gave a message regarding the opening of its headquarters and he said that Dubai and the UAE are well equipped to lead the digital economy because it has resource and a progressive mindset. He also praised their new host for future-proofing its society.
About Dubai
Dubai is one of the seven Emirates of the United Arab Emirates (UAE). It started as a fishing village in the 1700s. It is located between the continents of Asia, Europe, and Africa. This strategic location is key to its growth as a vital trading center. It was once under Abu Dhabi’s governance in 1833 before it joined the UAE in 1971. The discovery of oil in the 1960s fueled Dubai’s rise from a small trading center to a prominent commercial and financial hub. Today it is known for its towering skyscrapers, opulent shopping malls, and thriving tourism industry.
About Bybit
Bybit is a cryptocurrency derivatives exchange that was founded by its current CEO Ben Zhou in 2018. Its vision is to be the “crypto ark” of the world. The company’s mission statement is “Empowering crypto believers with next generation tools, support, and opportunities to unleash their full potential and level up with Web3.”
How Does Bybit’s Relocation to Dubai Affect Crypto?
Crypto was made to put financial control back into the hands of common persons. Unfortunately, this emerging technology has been abused by bad actors. 2022 was a bad year for the digital assets industry and saw the collapse of several institutions like FTX. An exchange that was found to be engaged in questionable transactions. A lot of investors lost money and this led to a siege of the crypto assets space.
The overreach of regulators has prompted institutions and entrepreneurs to look elsewhere to set up shop. Fortunately, crypto-friendly jurisdictions, like Dubai, exist.
Some bad actors are indeed taking advantage of crypto, but that is not a reason to stifle innovation. Regulators should look at how Dubai is approaching innovations. The Emirate has a clear law that governs virtual assets. This replaces ambiguity with a clear set of rules.
Bybit made the right choice. It invested in a country that will treat them right. It invested in a jurisdiction that is preparing for the future.
Featured image from Unsplash
