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Virtual Asset Regulatory Authority (VARA)

VARA was set up to achieve the goals stated by Law No.4 of 2022 concerning the Regulation of Virtual Assets in the emirate of Dubai. This authority is linked to the Dubai World Trade Centre Authority (DWTCA) and is responsible for licensing and regulating the sector across Dubai’s mainland and free zone territories (excluding DIFC). In coordination with the Central Bank of UAE and the Securities and Commodities Authority a full range of services is provided. 

VARA’s tasks include organizing issuance and trading of virtual assets and virtual tokens, organizing and authorizing virtual asset service providers, ensuring the highest standards of protection for beneficiaries’ personal data, organizing the operation of virtual assets’ platforms and portfolios and monitoring transactions and preventing price manipulation of the virtual assets. Activities that fall under VARA authorization include operating and managing virtual assets’ platforms services, exchanging services between virtual assets and currencies, whether national or foreign, exchanging services between one or more forms of virtual assets, virtual assets’ transfer, custody and management services, services related to the virtual assets’ portfolio and services related to the offering and trading of virtual tokens.

August 2023 Virtual Assets Regulatory Authority (Dubai)

Dubai’s Virtual Asset Regulatory Authority (VARA) published a revised Custody Services Rulebook, permitting staking from custody services in accordance with the prescribed requirements of the amended rulebook.

Virtual asset service providers licensed to carry out custody services may now, with specific additional approval from VARA, provide staking services to their customers from the same legal entity and without obtaining a separate licence for VA Management and Investment Services.

Additional licensing and supervision fees will be payable in connection with the provision of this additional service.

February 2023 Virtual Assets Regulatory Authority (Dubai)

Dubai’s Virtual Asset Regulatory Authority (VARA) has published its Virtual Assets and Related Activities Regulations 2023, which set out a comprehensive virtual asset framework built on "principles of economic sustainability and cross-border financial security."  

The regulatory framework is focused on the risks that each virtual asset activity presents to the market, and seeks to provide virtual asset service providers (VASPs) with a "clear framework of rules which apply to their particular operations and business models, while maintaining a baseline market standard of compliance across core regulatory domains."

VASPs that fulfil VARA's licensing requirements will be required to comply with four Compulsory Rulebooks:

Company Rulebook;

Compliance & Risk Management Rulebook;

Technology & Information Rulebook; and 

Market Conduct Rulebook.

  

Additionally, seven activity-specific Rulebooks have been developed to cater for risks associated with the provision of each virtual asset activity:

Advisory Services Rulebook;

Broker-Dealer Services Rulebook;

Custody Services Rulebook;

Exchange Services Rulebook;

Lending & Borrowing Services Rulebook;

Payments & Remittances Services Rulebook; and 

Management & Investment Services Rulebook.

  

VASPs will be required to comply with each activity Rulebook only if they are licensed by VARA to offer the activity.

August 2022 Virtual Assets Regulatory Authority (Dubai)

Dubai’s Virtual Asset Regulatory Authority (VARA) announced regulatory guidelines on marketing, advertising and promotions of virtual assets across the Emirate of Dubai.

According to the press release, the guidance reflects VARA’s objective to provide a "progressive framework" that can enable borderless economic opportunity, without compromising market security, across the global Virtual Assets industry.

The regulations specifically address "marketing and communications activities, ahead of operationalising the MVP licensees so that any mass-market information dissemination, and consumer solicitation are designed to safeguard community interests."

The regulatory guidelines "cover all forms of outreach, communications and advertising, including publication of information, awareness building, customer engagement, and/or investor solicitation".

Guidelines:

Key contacts

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