- Revolut moved closer to launching crypto services in the UAE after securing initial approval from Dubai’s VARA.
- The fintech plans to offer regulated crypto trading in the UAE once it receives final regulatory clearance.
- Dubai’s clear crypto rules continue to attract global fintech and digital asset companies to the UAE.
Revolut has moved closer to launching cryptocurrency services in the United Arab Emirates after receiving in-principle approval for a Virtual Assets Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA).
In a June 15 anouncement, the company said that the approval permits the fintech firm in the UK to proceed with its plans to provide brokerage and trading services for eligible customers, provided that it gets final regulatory approval.
The achievement follows an expansion by the UAE of its regulatory regime for digital currencies, which is drawing in foreign financial technology companies and cryptocurrency firms.
Revolut Expands UAE Ambitions
The approval moves Revolut closer to building a regulated financial services business in the UAE. The company also received authorization from the UAE Central Bank earlier this year to provide payment services, expanding its presence in the country.
Revolut serves more than 75 million customers globally, and more than 16 million of them use its cryptocurrency services. The UAE is the latest market where the company is working to expand its digital asset business.
“The UAE continues to demonstrate global leadership in establishing a robust and transparent framework for virtual assets,” said Joseph Khair, Head of Revolut Digital Assets FZE UAE.
He said the approval would allow the company to begin preparing its crypto services for launch under the country’s regulatory framework.
UAE Strengthens Crypto Hub Status
Dubai has become a key destination for crypto firms looking for a clear regulatory framework.
The Virtual Assets Regulatory Authority must give permission for any company to begin crypto services in Dubai. It considers several aspects when granting permits such as governance, finances, cybersecurity, and anti-money laundering measures, among others, and it maintains oversight on the businesses once they have been granted licenses.
Revolut began providing its services in the UAE after being issued with an initial license last September. In the meantime, it has been working on creating the infrastructure for its crypto services launch.
Competition for Digital Asset Users Grows
A large number of companies dealing with digital assets have flocked to the UAE owing to the introduction of regulations in the industry. Several financial hubs in the country such as the ADGM and the Dubai International Financial Center have seen an influx of fintech and cryptocurrency companies from around the world seeking to expand their operations in the country.
Revolut joining forces with the UAE is yet another example of international companies expanding their operations in the UAE.
Related: South Korea Prepares Crypto Tax Rollout Despite Repeal Push
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
