Dubai’s Virtual Assets Regulatory Authority (VARA) has declared a crucial deadline for cryptocurrency firms seeking to operate under its new regulatory framework. According to VARA’s announcement on Tuesday, all digital asset service providers in Dubai “must complete” their licen...
- Dubai’s VARA has set a November 17 deadline for crypto firms to obtain licensing.
- VARA emphasizes that failure to meet this deadline will result in enforcement measures being triggered.
Dubai’s Virtual Assets Regulatory Authority (VARA) has declared a crucial deadline for cryptocurrency firms seeking to operate under its new regulatory framework. According to VARA’s announcement on Tuesday, all digital asset service providers in Dubai “must complete” their licensing applications by November 17, 2023.
VARA revealed that it has already received over 1,000 applications from crypto firms eager to register under Dubai’s innovative regulatory regime. Initially, the regulator had set August 31 as the deadline for crypto asset service providers to secure their licenses, but it has now extended the timeline to November 17.
Under VARA’s virtual asset service provider (VASP) license, approved firms gain the authority to offer crypto services exclusively to qualified investors and institutional customers in Dubai. This regulatory move, which began in February, has solidified Dubai’s position as a premier destination for blockchain and cryptocurrency companies.
VARA has also emphasized that crypto firms must “proactively get in touch” with their approach to avoid unintended regulatory consequences, as any failure to meet the licensing requirements by the November 17 deadline will “defaultly” trigger enforcement measures.
For any VASP that has yet to submit their applications or may have overlooked notifications from commercial licensing authorities, it is important to expedite the application process. The impending deadline applies to all, including those with incomplete submissions.
Further, VARA has issued licenses to numerous virtual asset service providers that have demonstrated compliance with the regulations. The most recent recipient of initial approval from the regulator is WadzPay, a leading player in digital payments.