Dubai’s Virtual Assets Regulatory Authority (VARA) has issued a market notice to alert industry stakeholders and consumers that the deadline for virtual asset sector entities to apply for regulatory licenses has passed.
The announcement, which was formally made on November 5th, follows multiple advisories since the second quarter of 2023. Entities operating within the virtual asset domain were required to begin engaging with VARA on or before November 17th, 2023.
So far, 18 Virtual Asset Service Providers (VASPs) that are commercially licensed on the mainland under Dubai’s Department of Economy and Tourism (DET) have been fined for failing to comply with VARA’s directives and regulatory guidance. These enforcement actions are part of VARA’s commitment to protect consumers, maintain market integrity, and ensure the security of the Virtual Economy in and from Dubai.
VARA emphasizes that the enforcement process is ongoing, and additional fines, enforcement actions, and closure of unlicensed VASPs can be expected if regulatory gaps are not addressed by the end of the year. Entities seeking to continue offering virtual asset services in Dubai are encouraged to contact VARA immediately to avoid further penalties. Additionally, consumers are advised to visit the VARA website for information on approved VASPs in Dubai.
This announcement comes as part of VARA’s efforts to ensure consistency and resilience in deploying its regulatory regime. The authority aims to build trust in the global markets that its measures are effective in maintaining a secure and reliable virtual asset market in Dubai.
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