Dubai Virtual Assets Law: Law No. (4) of 2022 Regulating Virtual Assets in the Emirate of Dubai

At a glance

Full text

Official full text: Law No. (4) of 2022 Regulating Virtual Assets in the Emirate of Dubai (PDF, en)² · 396 KB · file checked 2026-09-24

Official page: rulebooks.vara.ae² · Official English translation: rulebooks.vara.ae²

Summary

Law No. (4) of 2022 establishes the comprehensive legal framework regulating virtual assets across the Emirate of Dubai. Enforced by the Dubai Virtual Assets Regulatory Authority (VARA), an autonomous body affiliated with the Dubai World Trade Centre Authority, the law applies to all virtual asset activities, platforms, and service providers across mainland Dubai and free zones, explicitly excluding the Dubai International Financial Centre (DIFC). It establishes a mandatory licensing regime requiring entities to obtain a VARA Permit before securing a commercial licence or commencing operations. Regulated activities comprise operating virtual asset platforms, crypto-to-fiat and crypto-to-crypto exchange, transfer services, safekeeping and custody management, wallet provision, and virtual token offerings. Key statutory obligations include establishing a legal business presence in Dubai, obtaining prior VARA approval for any permit assignment, complying with anti-money laundering rules, protecting client personal data, and adhering to market integrity standards. VARA is empowered to inspect premises, suspend trading, levy administrative fines, and suspend or revoke permits for non-compliance.

Summary written by the Atlas from the official text; the law itself prevails.

Main articles

• Art. 3: Applies the law to all virtual asset services across mainland Dubai and free zones, explicitly excluding the Dubai International Financial Centre.
• Art. 4: Establishes the Dubai Virtual Assets Regulatory Authority (VARA) as an autonomous public corporation affiliated with the Dubai World Trade Centre Authority.
• Art. 6: Empowers VARA to license providers, regulate token issuance, supervise platforms, counter price manipulation, collect fees, and coordinate with the UAE Central Bank.
• Art. 10: Mandates employee disclosure of personal and family virtual asset holdings, imposing perpetual confidentiality regarding proprietary market and participant data.
• Art. 13: Prohibits VARA from issuing, owning, or trading virtual assets, and bars any activities involving conflicts of interest.
• Art. 15: Prohibits conducting virtual asset activities without a VARA Permit, requiring Dubai incorporation and prior VARA approval before commercial licensing.
• Art. 16: Enumerates seven mandatory permit activities including platform operation, fiat-crypto exchange, crypto-crypto exchange, transfers, custody safekeeping, wallet services, and token trading.
• Art. 17: Bars the transfer or assignment of a VARA Permit without prior regulatory approval, declaring unauthorised assignments null and void.
• Art. 18: Authorises VARA to suspend permit issuance, halt provider operations, or suspend trading and issuance of virtual assets to protect the public interest.
• Art. 19: Empowers the Board of Directors to determine regulatory fees, service charges, and commissions collected by VARA.
• Art. 20: Authorises administrative penalties for violations, including fines, permit suspension for up to six months, and permit revocation alongside commercial licence cancellation.
• Art. 21: Grants judicial enforcement capacity to designated VARA inspectors to access premises, inspect records, issue violation reports, and request police assistance.
• Art. 22: Provides a 30-day statutory grievance process to contest regulatory decisions before the Director General, resolved finally by committee within 15 days.
• Art. 26: Grants implementing regulations issued by VARA and published on its website the full binding legal force of Official Gazette legislation.
• Art. 28: Mandates publication in the Official Gazette and establishes immediate entry into force on the date of publication.

Licences it governs

• VASP · Dubai (VARA)

  Virtual Asset Advisory Services Licence

  VARA

• VASP · Dubai (VARA)

  Virtual Asset Broker-Dealer Services Licence

  VARA

• VASP · Dubai (VARA)

  Virtual Asset Custody Services Licence

  VARA

• VASP · Dubai (VARA)

  Virtual Asset Exchange Services Licence

  VARA

• VASP · Dubai (VARA)

  Virtual Asset Lending and Borrowing Services Licence

  VARA

• VASP · Dubai (VARA)

  Virtual Asset Management and Investment Services Licence

  VARA

• VASP · Dubai (VARA)

  Virtual Asset Transfer and Settlement Services Licence

  VARA

Regulators that apply it

• Dubai (VARA)

  Virtual Assets Regulatory Authority (VARA)

  Established under Dubai Law No. (4) of 2022, VARA is the world's first standalone specialized regulatory authority governing virtual assets.