The Virtual Assets Regulatory Authority (VARA), Dubai’s crypto regulator, has invited businesses operating within the emirate to register or obtain a license by November 17 at the latest, failing which they will be asked to decommission.
More than 1,000 legacy companies have submitted applications to register under Dubai’s distinct regulatory framework, demonstrating the city’s dedication to promoting an open and robust virtual asset environment as the Emirate strengthens its place in the international scene.
The establishment of the Authority by Law No. 4 of 2022 and the release of VARA regulations in February 2023 marked the beginning of the regulated Virtual Assets sector in Dubai.
This sector encompasses both traditional businesses involved in Virtual Asset activities and specialized Virtual Asset Service Providers (VASPs). As a result, all legacy operators operating in the Emirate of Dubai are required to obtain licenses or registrations under VARA.
A dedicated licensing team at VARA has successfully launched an expedited domestic outreach initiative, building on significant outreach efforts conducted in partnership with the Department of Economy and Tourism (DET) and the Dubai Free Zone Council (DFZC) through 2023.
The Virtual Assets Regulatory Authority (VARA) of Dubai is putting more effort into interacting with the virtual asset market to assess adherence to the rules that it has established. One of its main points of emphasis is that all Virtual Asset Service Providers (VASPs) operating in the Emirate must obtain a license.
The authority said, “VARA is calling on VASPs that have yet to submit the applications, have missed the notifications from their commercial licensing authorities, or have submitted incomplete forms to proactively get in touch, to avoid unintended regulatory consequences.”