Crypto Law Profile

VARA Virtual Assets and Related Activities Regulations 2023

Dubai’s VARA framework for VASP licensing, VA issuance, AML/CFT, market conduct, marketing, supervision and enforcement. Current rulebook version is effective from 19 June 2025.

United Arab Emirates Effective Regulation Jun 19, 2025

At a glance

Jurisdiction Dubai, UAE; excludes the Dubai International Financial Centre.
Status Current VARA rulebook version is effective from 19 June 2025.
Primary Regulator Dubai Virtual Assets Regulatory Authority (VARA).
Core Scope VASP licensing, VA activities, issuance, AML/CFT and market conduct.

Overview

The VARA Virtual Assets and Related Activities Regulations 2023 are the core rulebook framework for virtual asset activity in Dubai, United Arab Emirates. Administered by the Dubai Virtual Assets Regulatory Authority (VARA), the Regulations apply across the Emirate of Dubai, including special development zones and free zones, while excluding the Dubai International Financial Centre. As of 16 June 2026, VARA’s live rulebook lists the current version as effective from 19 June 2025.

The framework formally sits under Law No. (4) of 2022 Regulating Virtual Assets in the Emirate of Dubai. It is designed to govern virtual assets, virtual asset service providers (VASPs), virtual asset issuance, licensing, AML/CFT controls, market conduct, marketing, supervision, examination and enforcement. VARA states that the most updated version of the Regulations is made available through its official rulebook site.

Key provisions of the VARA Virtual Assets Regulations

Licensing and regulatory perimeter

The Regulations create a Dubai-specific licensing perimeter for VA Activities. An entity may not carry out a VA Activity by way of business in the Emirate unless it is authorised and licensed by VARA, acting as an employee for a VARA-licensed employer, or falls within an exempt category. Separate licensing provisions require entities seeking to conduct VA Activities to apply for, obtain and maintain the relevant VARA licence.

Regulated virtual asset activities

Schedule 1 defines the VA Activities covered by the current framework. These include advisory services, broker-dealer services, custody services, exchange services, lending and borrowing services, VA management and investment services, and VA transfer and settlement services. The framework also addresses virtual asset issuance through a dedicated VA Issuance Rulebook.

Issuance, privacy assets and market conduct

Entities issuing a virtual asset in the Emirate in the course of business must comply with the VA Issuance Rulebook. The Regulations also prohibit issuance of anonymity-enhanced cryptocurrencies and VA activities related to them in the Emirate. Part VIII establishes market-offence concepts, including insider dealing, unlawful disclosure and market manipulation, with detailed examples of conduct that may give false or misleading signals about supply, demand or price.

AML/CFT and supervisory powers

VASPs must comply with UAE federal AML/CFT laws, applicable regulatory requirements, VARA Regulations, rulebooks and directives, including FATF-related requirements incorporated by VARA. VARA’s licensing powers include the ability to grant licences for specified VA Activities and to vary, suspend or revoke a licence in circumstances described by the rulebook.

Jurisdictional impact

The Regulations are local to Dubai but interact with UAE-wide legal and supervisory frameworks. VARA describes itself as the competent authority for virtual assets and VA Activities across Dubai, except DIFC, and the rulebook states that UAE-CBDC matters remain under the sole and exclusive regulatory purview of the Central Bank of the UAE. For CryptoSlate taxonomy purposes, the jurisdiction should be mapped to United Arab Emirates, with the Dubai-only scope preserved in the profile content and editorial note.

Status and timeline

VARA issued the Regulations on 7 February 2023. The live rulebook lists earlier versions dated 7 February 2023, 5 June 2023, 19 September 2023 and 1 October 2024, followed by the current version. VARA’s May 2025 announcement separately describes updated activity-based rulebooks and a transition period ending with full compliance required by 19 June 2025. No later replacement of the Regulations was identified in the official sources reviewed for this profile.

Related laws and materials

  • Law No. (4) of 2022 Regulating Virtual Assets in the Emirate of Dubai.
  • Regulations on the Marketing of Virtual Assets and Related Activities 2024.
  • VARA activity-specific rulebooks, including custody, exchange, lending and borrowing, and virtual asset issuance rulebooks.
  • UAE federal AML/CFT laws and VARA AML/CFT circulars applicable to licensed VASPs.

Key provisions

Licensing and regulatory perimeter

Entities carrying out VA Activities by way of business in Dubai generally must be authorised and licensed by VARA, unless an exemption applies.

Licensing & Registration Jun 19, 2025 Source

Licence application and maintenance

Entities seeking to conduct VA Activities must apply for, obtain and maintain a VARA licence for each activity conducted in the Emirate.

Licensing & Registration Jun 19, 2025 Source

Regulated VA activities

Schedule 1 defines advisory, broker-dealer, custody, exchange, lending/borrowing, management/investment and transfer/settlement services.

Market structure Jun 19, 2025 Source

Virtual asset issuance

Business issuance of a Virtual Asset in the Emirate must comply with VARA’s VA Issuance Rulebook, as amended from time to time.

Token Issuance Jun 19, 2025 Source

Anonymity-enhanced assets

Issuance of anonymity-enhanced cryptocurrencies and VA activities related to them are prohibited in the Emirate.

Privacy coins Jun 19, 2025 Source

AML/CFT obligations

VASPs must comply with UAE federal AML/CFT laws, applicable regulatory requirements and VARA rulebooks, regulations and directives.

AML/CFT Jun 19, 2025 Source

Market offences

Part VIII addresses market offences, including insider dealing, unlawful disclosure and market manipulation.

Market abuse Jun 19, 2025 Source

Timeline

  1. VARA issues 2023 Regulations

    VARA announced the Virtual Assets and Related Activities Regulations 2023 for Dubai’s VA framework.

    Enacted Source
  2. Version 2 listed

    VARA’s current rulebook lists V.2 of the Regulations dated 5 June 2023.

    In force Source
  3. Version 3 listed

    VARA’s current rulebook lists V.3 of the Regulations dated 19 September 2023.

    In force Source
  4. Marketing Regulations effective

    VARA’s separate Marketing Regulations are listed as effective from 1 October 2024.

    In force Source
  5. Updated activity rulebooks

    VARA announced Version 2.0 of activity-based rulebooks and a 30-day transition period.

    Enacted Source
  6. Current version effective

    VARA’s live rulebook states the current Regulations version is effective from 19 June 2025.

    In force Source

Who it affects

Actors

Central Bank of the UAE, Dubai World Trade Centre Authority, Virtual Assets Regulatory Authority (VARA)

Asset classes

Anonymity-Enhanced Cryptocurrencies, Fiat-referenced virtual assets, Virtual assets

Official sources

Editorial note

Dubai-specific regime under Law No. (4) of 2022. Scope excludes DIFC and should be reviewed against VARA’s live rulebook because VARA states it may amend the Regulations over time.