Dubai’s VARA Sets New Deadline for Crypto Entities To Get Licensed

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Dubai’s VARA Sets New Deadline for Crypto Entities To Get Licensed
  • Dubai’s VARA said crypto companies registered under a new legal framework have to finish their applications by November 17. 
  • The virtual asset regulator said over 1,000 companies have filed to get licensed since April. 
  • VARA warned companies who fail to comply with the deadline risk enforcement actions.

Crypto companies registered under Dubai‘s new legal framework have until November 17 to finish their applications. The Dubai Virtual Assets Regulatory Authority (VARA) recently made this announcement and warned crypto entities risk enforcement actions if they failed to comply. 

Notably, the regulator said the announcement underscores its commitment to fostering a transparent and resilient virtual assets environment. According to VARA, over 1,000 companies have filed applications to register under its new regulatory regime. 

Furthermore, VARA said Virtual Asset Service Providers (VASPs) who have yet to submit applications, have missed alerts from their commercial licensing authorities, or have submitted incomplete paperwork to contact them immediately. Per the announcement, the digital asset regulator said companies who failed to comply with the deadline may face enforcement actions.  

It bears mentioning that VARA had earlier set August 31 as the deadline for all entities to fulfill all licensing requirements. As it appears, the new deadline is perhaps a move to open doors to crypto entities who missed the August deadline. 

Following the rise in blockchain-related technologies, Dubai has positioned itself as a top location for crypto institutions. To contain the boom, the emirate became one of the first locations to set up a crypto-focused regulatory agency. Additionally, Dubai in February,  launched its crypto regulatory framework to seemingly offer more protection to customers and companies.

The VASP license granted by VARA allows companies to provide cryptocurrency services to eligible investors and institutional clients in Dubai. Since April of this year, the  United Arab Emirates’ Securities and Commodities Authority disclosed it has been accepting applications from different companies. 

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