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Dubai Mandates Licensing for Crypto Companies as It Sets Out Regulatory Requirements

Crypto firms must obtain authorization and relevant licenses to operate in Dubai, the jurisdiction's new virtual asset rulebooks say.

The extensive rules published Tuesday detail requirements for companies from cyber security norms to compliance and risk-management standards. A separate set of rulebooks address specific activities like issuance, advisory, custody and exchange services.

All activities and firms fall under the supervision of the Virtual Assets Regulatory Authority (VARA), set up last year, to oversee the sector as Dubai aims to attract crypto and blockchain companies.

"With bespoke rules and guidelines designed to provide clarity, assure certainty, and mitigate market risks, VARA seeks to develop a model framework for global economic sustainability within an innovation-centric environment that is truly borderless, technology agnostic, and future-focused," the regulator said.

(By Sandali Handagama)

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