LUCKNOW (CoinChapter,.com) — All the digital asset service providers operating in Dubai now have Nov. 17 as the deadline to obtain necessary licenses from the region’s Virtual Asset Regulatory Authority (VARA).
VARA warned that all crypto firms must “proactively get in touch to avoid unintended regulatory consequences.” If crypto firms fail to clear the licensing requirement before the deadline, the enforcement mechanisms will be ‘triggered by default.’
The earlier date set by VARA to clear all the licensing requirements by crypto firms was Aug. 31.
VARA Regulations in Dubai
Dubai’s digital asset regulator introduced VARA earlier this year. The regulator also adopted four mandatory rulebooks, seven activity-specific rulebooks, and a virtual asset issuance rulebook. These regulations provide long-awaited regulatory clarity and financial security to investors in Dubai.
“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 stated on Tuesday.
Additionally, VARA imposed penalties on crypto exchanges such as OPNX and its co-founders for non-compliance with these regulations. These actions showed that Dubai is strictly implementing these regulations and working toward the UAE’s anti-financial crimes compliance framework.
Licenses Granted to Compliant VASPs
VARA has already issued licenses to several virtual asset service providers (VASPs) that abide by these regulations. WadzPay, a crypto firm, recently received “initial approval” from the regulator.
In October, crypto wallet provider Backpack obtained a VASP license before launching its Backpack Exchange. Nomura’s collaborative venture, Komainu, also received the full license from VARA in August. Komainu had previously obtained its Minimal Viable Product (MVP) license in November 2022.
Moreover, VARA also issued an MVP license to Binance, the world’s largest crypto exchange. The exchange also announced plans to provide virtual asset broker-dealer services in Dubai.
Last year’s market crash with the downfall of prominent digital asset exchange and lending platforms led regulatory bodies across the globe to establish crypto oversight measures. The European Union is about to introduce its licensing regulations, while the United Kingdom, South Korea, and several others are drafting their regulatory frameworks.
