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
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