REGULATOR’S PROFILE — VARA

Dubai’s VA regulator (VARA): mandate, powers, rule-making instruments, licensing scope, AML/CFT supervision, market-offence regime, and enforcement toolkit—at a glance.

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We translate VARA’s Regulations and Rulebooks into board-grade policies, registers, disclosures and evidence packs for inspections and licensing.

Who is VARA

Establishment & legal basis

VARA is established by Dubai Law No. (4) of 2022 and affiliated to Dubai World Trade Centre Authority (DWTCA) to regulate Virtual Assets (VAs) and Virtual Assets Services Providers (VASPs) across Dubai mainland and all free zones in Dubai except the Dubai International Financial Centre (DIFC).



Objectives

Promote Dubai as a regional/international VA hub; raise awareness and innovation; attract investment; protect investors and curb illegal practices; and set regulations/standards for platforms and VASPs.



Principles & policy goals. 

Five fundamentals (market integrity, consumer protection, technology-neutrality, regulatory resilience, proportionality) under two policy goals (promote Dubai/UAE; align with FATF via a principles-based regime).

JURISDICTION & RULE-MAKING POWERS

Jurisdiction

VARA’s Regulations apply to all VA Activities in the Emirate; VARA can interpret, waive, modify Regulations and Rulebooks.

Instruments
  • Rules (binding), issued in the Regulations/Rulebooks;
  • Directives (binding, case- or class-specific, may set capital/liquidity limits, reporting, exposure caps);
  • Guidance (indicative, non-binding).

WHAT VARA REGULATES

VA Activities (licensable)

Advisory, Broker-Dealer, Custody, Exchange, Lending & Borrowing, VA Management & Investment, Transfer & Settlement, Category-1 Issuance.

Issuing VAs

Issuers active “by way of business” must comply with the VA Issuance Rulebook; VARA can classify or prohibit VAs (e.g., Anonymity-Enhanced Cryptocurrencies prohibited).

General prohibition

No Entity may carry out a VA Activity by way of business without a VARA Licence (with narrow exemptions).

LICENSING MODEL & MARKET ACCESS

Licence per activity

process and conditions as prescribed by VARA.

Professional Exemption

(incidental legal/accountancy/consulting work) and Exempt Entities (public sector/charities) require VARA confirmation/no-objection.

Mandatory registration

for large proprietary traders (≥ USD 250m VA in any rolling 30 days).

Critical Service Providers

may be designated and brought under direct supervision.

VARA’s licensing powers

Grant, vary, suspend, or revoke Licences; impose additional requirements; charge application & supervision fees.

AML/CFT SUPERVISORY ROLE

Supervisory Authority

VARA is the Supervisory Authority for all VASPs in Dubai under UAE Federal AML-CFT Laws and can supervise compliance, coordinate with FIU, and requires VASPs to meet FATF-aligned standards.

MARKETING & MARKET-OFFENCE ARCHITECTURE

Marketing

All Entities must follow the 2024 Marketing Regulations.

Market Offences

Definitions and prohibitions for Insider Dealing, Unlawful Disclosure, Market Manipulation; “Accepted Practices” carve-outs; Market Sounding controls; prevention/detection & suspicious-activity reporting to VARA and UAE FIU.

SUPERVISION, EXAMINATION & ENFORCEMENT

Examination powers

at any time; 10-year tail of obligations post-regulation; broad enforcement toolkit (reprimands, cease-and-desist, licence variation/suspension/revocation, public statements, additional supervision, and fines.

Confidentiality

Strict duty to keep VARA communications/investigations confidential unless VARA publishes or consents.

QUICK FACTS

Fees

Application (per activity), Extension = 50% of the lower application fee for extra activities in a bundle, Annual Supervision per activity; risk-based uplifts possible.

Fines

Indicative bands up to AED 50m (corporates) / AED 20m (individuals) for certain violations; 1%/month compounding on unpaid fines.

Where to find the latest text

VARA publishes Regulations/Rulebooks and updates on its website.

What CRYPTOVERSE Legal delivers

Licensing & scope mapping (activities, exemptions, critical-provider implications).

Policy & control suite (Company/CRM/T&I/Market Conduct Rulebooks implemented end-to-end).

Market-offence prevention (insider-list, conduct controls, surveillance, reporting to VARA/FIU).

Inspection-ready evidence (registers, reconciliations, MI dashboards, audit trails).

FAQs

No. VARA covers all Dubai zones excluding DIFC. (Introduction, p.4).

Yes. VARA can interpret, waive, or modify Regulations/Rulebooks/Directives/Guidance.

Any Entity carrying out a VA Activity by way of business in Dubai (list in Schedule 1) must be Licensed by VARA (subject to limited exemptions).

No. Anonymity-Enhanced Cryptocurrencies are prohibited (issuance and VA Activities).

CBUAE retains exclusive purview for UAE-CBDC and applicable federal payment-token rules.