Dubai’s VARA Has Struck Correct Balance in Licensing Time Frame, Says Senior Official

Dubai’s crypto regulator, the Virtual Assets Regulatory Authority (VARA), has been praised for striking the right balance in terms of licensing time frames, according to a senior official. In the past year, VARA has granted regulatory approvals to major global crypto exchanges such as OKX, Crypto.com, and Binance. VARA, along with other regulators in the UAE, including the Abu Dhabi Global Market, has played a critical role in positioning Dubai as a leading global crypto hub. The official compared the licensing process to the story of Goldilocks and the Three Bears, emphasizing the importance of finding the right balance. While the exact time frame for obtaining a license from VARA is not stated, it has been noted that the process involves months of back and forth for regulatory fine-tuning. VARA’s focus is on responsible licensing, supervision, compliance with anti-money laundering and terrorism financing regulations, and customer protection. The official also expressed optimism that more major traditional financial institutions will enter the crypto space in the coming years, leading to the institutionalization of the industry.