November 9, 2023

VARA Sets Nov. 17 Deadline for Crypto Companies Registration

Dubai's VARA

Dubai’s VARA

Cryptocurrency companies operating in Dubai have been given a deadline of November 17 to either register or obtain a license from the Virtual Assets Regulatory Authority (VARA).

The regulatory body has warned that companies that fail to apply for a license by the deadline may face prohibition from operating in the emirate.

“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.”

Dubai has received over 1,000 applications from legacy companies seeking to register under its robust regulatory framework, highlighting the city’s commitment to promoting a trustful and open environment for virtual assets.

As the emirate strengthens its position on the global stage, the UAE authorities began discussing the issuance of cryptocurrency licenses in February 2022 to attract foreign cryptocurrency companies.

The government is following a “hybrid approach” to regulation, with the local exchange regulator and the Central Bank exercising joint-supervision.

In February, Dubai authorities introduced new regulations for crypto companies, requiring them to obtain permission and appropriate licenses to operate in the city.

Additionally, there are separate rules for specific activities like issuance, consulting services, storage, and exchange services.

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