Dubai's Virtual Assets Regulatory Authority (VARA) has announced a critical milestone in its journey to bolster security against cross-border threats and prioritise consumer protection within its growing Virtual Assets sector. 

 

Firms lagging in their application processes have until November 17, 2023 before enforcement mechanisms are due to be triggered by default. 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.

 

1,000 legacy firms have filed

As the rmirate fortifies its position in the global landscape, more than 1,000 legacy firms have filed applications to register under Dubai's unique regulatory framework, underscoring the city's commitment to fostering a transparent and resilient virtual asset environment.

 

Following the inception of the Authority by Law No 4 of 2022 and the issuance of VARA regulations in February 2023, Dubai's Virtual Assets sector, which includes specialist Virtual Asset Service Providers (VASPs) and traditional businesses involved in Virtual Asset activities, became a part of a regulated sector requiring all such legacy operators in the Emirate of Dubai to obtain licences or registrations under VARA. 

 

Further to substantive outreach efforts facilitated in collaboration with the Department of Economy and Tourism (DET) and the Dubai Free Zone Council (DFZC) through 2023, VARA's dedicated licensing team have successfully rolled out an accelerated domestic outreach programme.

 

VARA is advancing its engagement with the virtual asset market to evaluate compliance with its set regulations, emphasising the obligatory licensing for all VASPs in the emirate.--TradeArabia News Service