Dubai, UAE, 11/07/23 - Dubai's Virtual Assets Regulatory Authority (VARA) announced a critical milestone in its journey to bolster security against cross-border threats and prioritise consumer protection within its growing Virtual Assets sector. As the Emirate fortifies its position in the global landscape, more than 1,000 legacy firms have filed applications to register under Dubai's unique regulatory framework, underscoring the city's commitment to fostering a transparent and resilient virtual asset environment.
Following the inception of the Authority by Law No. 4 of 2022 and the issuance of VARA regulations in February 2023, Dubai's Virtual Assets sector, which includes specialist Virtual Asset Service Providers (VASPs) and traditional businesses involved in Virtual Asset activities, became a part of a regulated sector requiring all such legacy operators in the Emirate of Dubai to obtain licenses or registrations under VARA. Further to substantive outreach efforts facilitated in collaboration with the Department of Economy and Tourism (DET) and the Dubai Free Zone Council (DFZC) through 2023, VARA's dedicated licensing team have successfully rolled out an accelerated domestic outreach programme.
Dubai's Virtual Assets Regulatory Authority (VARA) is advancing its engagement with the virtual asset market to evaluate compliance with its set regulations, emphasising the obligatory licensing for all Virtual Asset Service Providers (VASPs) in the Emirate. Firms lagging in their application processes have until 17th November 2023 before enforcement mechanisms are due to be triggered by default. 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.
This market notice is being issued by Dubai’s Virtual Assets Regulatory Authority (VARA) to highlight to all industry stakeholders, and consumers that the deadline for VA sector entities to engage in the regulatory licence application process has now elapsed. As formally announced on 05.November further to multiple advisories since Q2-2023, entities operating within the virtual asset domain were required to commence procedural engagement with VARA on/or before 17.November.2023.