Dubai Strengthens Regulated Crypto Market as VARA Approves 50th Licensed Firm

Dubai has been considered one of the leading global regulated crypto hubs. The city continues to advance its crypto regulatory developments under the oversight of the Virtual Assets Regulatory Authority (VARA). As Dubai VARA recently noted, Dubai envisions the growth of its crypto market through a regulatory framework that fosters innovation while ensuring customer protection.

As part of the efforts of the Dubai VARA, the city has now reached a critical milestone. The emirate has now issued the 50th virtual asset service provider (VASP) license through VARA. This reflects the steady growth of the city’s crypto ecosystem.

Dubai VARA supports crypto growth, issues 50th VASP license

The crypto industry is witnessing significant progress in Dubai. This is mainly due to the city’s clear and transparent crypto regulations, with the Dubai VARA playing a significant role. 

It is worth noting that this statement comes following a critical development within Dubai’s crypto market. Reportedly, the Dubai VARA has approved its 50th VASP license, marking a major milestone in the city’s evolving crypto market.

Interestingly, Tribe Tokenization FZE, a prominent real-world asset (RWA) tokenization platform, is the latest firm to secure a VASP license from the Dubai VARA. This development gains particular attention as RWA tokenization is a rapidly growing segment in the crypto sector.  

Unveiling VARA’s crypto licensing framework

Notably, the Dubai VARA has embraced a structured crypto regulatory strategy. What stands unique about the city’s crypto regulation is its distinction between In-Principle Approvals (IPAs) and full VASP licenses.

As per the Dubai VARA, the IPA indicates that a company has attained initial approval from the regulators. But it doesn’t mean that the firm could start providing services. To receive a full license, these companies should meet additional compliance and regulatory standards.

Source: VARA

So far, Dubai VARA has licensed 50 crypto firms under its regulatory frameworks. Some of the examples are CoinCorner Virtual Assets Broker & Dealer Services, LTP, Animoca Brands Middle East, etc.

Dubai leads major crypto hubs

It is important to note that Dubai has surpassed major crypto hubs as the city has approved 50 VASP licenses. For instance, Singapore and Hong Kong, two key rivals of Dubai, are now falling behind the city in terms of licensed crypto firms. The Monetary Authority of Singapore (MAS) has so far approved only 37 payment institutions to offer DPT services. The country doesn’t operate a VASP licensing framework, unlike Dubai.

Source: MAS

At the same time, Hong Kong’s Securities and Futures Commission (SFC) has established a solid crypto regulatory framework, but with limitations. Thus, Hong Kong has only a limited number of licensed crypto companies under its regulatory regime.