In one of the most comprehensive efforts to create a crypto regulation framework, Dubai’s Virtual Asset Regulatory Authority (VARA) has issued its Virtual Asset Regulatory Authority 2023 regulations.

VARA was launched in 2022 and is the sole authority for regulating, supervising and overseeing Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs) across Dubai (excluding the Dubai International Financial Centre).

As per the VARA regulations 2023, any entity that wishes to carry out Virtual Asset activities in Dubai must obtain prior authorisation from VARA. VASPs must go through a 4-stage licensing process. The licensing process starts with obtaining a provisional permit, followed by a preparatory licence, an operating licence and eventually a Minimum Viable Product (MVP) licence.