Dubai’s VARA Sets Milestone as Over 1,000 Companies Apply for Registration Ahead of Final Deadline Extension

News Desk 8 November 2023

1 minute read

Dubai, Virtual Assets Regulatory Authority, VARA, fines, cease-and-desist orders, marketing regulations, VASPs, unlicensed firms

Dubai’s Virtual Assets Regulatory Authority (VARA) has achieved a significant landmark in its efforts to enhance security against international threats and prioritize safeguarding consumers within the rapidly expanding Virtual Assets sector.

While Dubai strengthens its position in the global arena, over 1,000 well-established companies have submitted requests for registration under Dubai’s distinctive regulatory structure, underscoring the city’s unwavering commitment to nurturing a transparent and robust virtual asset environment.

This milestone follows the establishment of the Authority through the enactment of Law No. 4 in 2022, coupled with the introduction of VARA regulations in February 2023. Consequently, Dubai’s Virtual Assets sector, encompassing both specialized Virtual Asset Service Providers (VASPs) and conventional enterprises engaged in Virtual Asset activities, has transitioned into a regulated sector.

This transition mandates all existing operators involved in these activities within the Emirate of Dubai to procure licenses or registrations under VARA.

Building on extensive outreach initiatives conducted in collaboration with the Department of Economy and Tourism (DET) and the Dubai Free Zone Council (DFZC) throughout 2023, VARA’s dedicated licensing team has successfully launched an accelerated domestic outreach program.

VARA is intensifying its engagement with the virtual asset market to assess adherence to its established regulations, highlighting the mandatory licensing requirements for all VASPs operating within the Emirate.

Companies currently in the process of applying for licenses have until November 17, 2023, before enforcement measures are automatically initiated.

VARA is urging VASPs who have not yet submitted their applications, missed notifications from their commercial licensing authorities, or provided incomplete forms to proactively establish contact to avoid unintentional regulatory ramifications.