VARA Regulations 2023: Virtual Assets and Related Activities Regulations 2023

At a glance

Full text

Official full text: Virtual Assets and Related Activities Regulations 2023 (PDF, en)¹ · 445 KB · file checked 2026-09-24 · consolidated version of 2025-05-19

Official page: rulebooks.vara.ae¹

Summary

The Virtual Assets and Related Activities Regulations 2023 establish Dubai's comprehensive regulatory framework governing virtual assets and related activities. Enacted by the Dubai Virtual Assets Regulatory Authority (VARA) under Law No. (4) of 2022, the regulations apply to all virtual asset service providers (VASPs) and activities across Dubai, including mainland and free zones, but excluding the Dubai International Financial Centre (DIFC). The regulations prohibit conducting virtual asset business without authorization and create eight specific licences: Advisory Services, Broker-Dealer Services, Category 1 VA Issuance, Custody Services, Exchange Services, Lending and Borrowing Services, VA Management and Investment Services, and VA Transfer and Settlement Services. They completely prohibit anonymity-enhanced cryptocurrencies (privacy coins) and require mandatory registration for proprietary traders investing USD 250 million or more within 30 days. Key obligations mandate compliance with compulsory and activity-specific rulebooks, federal AML/CFT laws, marketing rules, and prohibitions against market offences such as insider dealing and market manipulation. VARA exercises sweeping supervision, examination, licence revocation, and enforcement powers, including substantial administrative fines.

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

Main articles

• Reg. II.C.1: Prohibits the issuance of anonymity-enhanced cryptocurrencies and all related virtual asset activities in Dubai.
• Reg. III.A.1: Prohibits carrying out any virtual asset activity by way of business in Dubai without a VARA licence or exempt status.
• Reg. IV.A.1: Requires all entities seeking to conduct virtual asset activities in Dubai to obtain and maintain a VARA licence.
• Reg. IV.A.5: Exempts practising lawyers, accountants, and business consultants carrying out virtual asset activities wholly incidental to their profession.
• Reg. IV.A.7: Mandates VARA registration for large proprietary traders investing their own portfolio at or above USD 250 million per 30-day period.
• Reg. IV.A.8: Provides voluntary VARA registration for DLT technology service providers and proprietary virtual asset investors.
• Reg. IV.A.9: Empowers VARA to designate systemically important entities serving VASPs as Critical Service Providers subject to direct supervision.
• Reg. IV.B.1: Grants VARA sole discretion to issue licences, specify permitted virtual asset activities, and impose operational conditions or time limits.
• Reg. IV.B.2: Authorises VARA to vary, suspend, or revoke licences for material regulatory violations, insolvency, unpaid court judgments, or good cause.
• Reg. V.1: Mandates continuous compliance with four compulsory rulebooks: Company, Compliance and Risk Management, Technology and Information, and Market Conduct.
• Reg. V.2: Requires licensees to comply with activity-specific rulebooks corresponding to each regulated virtual asset activity they carry out.
• Reg. VI.A.3: Designates VARA as the supervisory authority for VASPs under UAE Federal AML-CFT laws with full oversight powers.
• Reg. VII.A.1: Requires all entities to comply with VARA's Marketing Regulations when marketing, advertising, or promoting virtual assets.
• Reg. VIII.A.2: Defines market offences under Dubai law, specifically encompassing insider dealing, unlawful disclosure of inside information, and market manipulation.
• Reg. VIII.E.1: Prohibits engaging in, attempting, recommending, inducing, or facilitating insider dealing or unlawful disclosure of inside information.
• Reg. VIII.I.1: Prohibits engaging in, attempting, or facilitating market manipulation involving virtual assets traded in Dubai.
• Reg. IX.A.1: Subjects all entities to VARA investigation and examination at any time, requiring full cooperation and production of records.
• Reg. IX.C.1: Empowers VARA to take administrative enforcement actions, including cease-and-desist orders, public statements, licence revocation, and penalties.
• Reg. X.A.1: Imposes strict statutory confidentiality on all entities regarding VARA operations, communications, investigations, and regulatory proceedings.
• Schedule 1: Defines eight regulated virtual asset activities: Advisory, Broker-Dealer, Category 1 Issuance, Custody, Exchange, Lending/Borrowing, Management/Investment, and Transfer/Settlement.
• Schedule 2: Establishes fixed licence application fees, extension fees, and annual supervision fees per regulated virtual asset activity.
• Schedule 3: Prescribes administrative fines up to AED 50 million, 15% annual revenue, or 300% of profits/losses for market offences and violations.

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.