Dubai, one of the seven emirates in the United Arab Emirates, has officially announced that it is now accepting applications from cryptocurrency companies looking to obtain licenses to operate within the region.
To do business in the UAE, digital asset firms must be legally registered with the Dubai government and obtain a license from the Dubai Virtual Assets Regulatory Authority (VARA).
The VARA Board of Directors has made it clear that companies that are either based in the country or plan to open a representative office there will need to license their activities with the Securities and Commodities Administration (SCA).
While also adhering to regulatory guidelines and agreeing on their mode of operation.
In order to be considered for a license, the regulator has the right to request any documents or data from the virtual asset platform operator.
However, crypto companies that have already been licensed to operate in financial free zones are exempt from this requirement.
Recently, Bloomberg reported that VARA is intending to make it tougher for crypto companies to obtain a license to operate in the emirate, citing informed sources within the regulatory authority.