VARA Virtual Assets Regulations

United Arab Emirates

2023

Payments

AML/CFT

Overview

The Virtual Assets Regulatory Authority (VARA), established in 2022, oversees the regulation of virtual assets in Dubai (excluding DIFC). In 2023, VARA issued the Virtual Assets and Related Activities Regulations with detailed rulebooks for Virtual Asset Service Providers (VASPs).
The framework applies to a wide range of industries, including crypto exchanges, custodians, brokers, payment/remittance providers, lending/borrowing platforms, investment managers, and advisory firms. It aims to ensure transparency, market integrity, investor protection, and compliance with international AML/CFT standards.

Key Obligations

Obtain a VARA license for each regulated activity (advisory, custody, exchange, lending, payments, etc.)
Comply with General Rulebooks (Company, Compliance & Risk, Technology & Information, Market Conduct)
Follow Activity-Specific Rulebooks tailored to the VASP’s business model
AML/CFT compliance in line with UAE federal law

Prohibited activities include issuance of anonymity-enhanced cryptocurrencies
Marketing must be transparent, risk-disclosed, and records kept for at least 2 years
Entities with proprietary investments exceeding USD 250m must register as Large Proprietary Traders
Token issuance (including fiat-referenced/stablecoins) must follow the Issuance Rulebook

FAQ

Related Regulations

Federal Decree-Law No. 20/2018

Payment Token Services Regulation

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