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VARA (Virtual Assets Regulatory Authority)

RegulationUpdated: January 15, 2025
Also known as: Virtual Assets Regulatory Authority, Dubai VARA

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AI RMF (AI Risk Management Framework)Asset SegregationBeneficial OwnershipBeneficiaryBIS (Bank for International Settlements)BSA (Bank Secrecy Act)CASP (Crypto-Asset Service Provider)CASP LicenseCFTC (Commodity Futures Trading Commission)Client AssetsData MinimizationDLT Pilot RegimeeIDAS 2.0ESMA (European Securities and Markets Authority)FATF (Financial Action Task Force)FCA (Financial Conduct Authority)FEAT PrinciplesFinCEN (Financial Crimes Enforcement Network)FINMA (Swiss Financial Market Supervisory Authority)FINRA (Financial Industry Regulatory Authority)FSB (Financial Stability Board)GDPR (General Data Protection Regulation)High-Risk AI SystemHowey TestKYC (Know Your Customer)Market ManipulationMAS (Monetary Authority of Singapore)MiCA (Markets in Crypto-Assets Regulation)MiCA ComplianceMiFID IIOFAC (Office of Foreign Assets Control)OriginatorPassportingPEP (Politically Exposed Person)PII (Personally Identifiable Information)Qualified CustodianQualified InvestorRetail InvestorRight to be ForgottenSAR (Suspicious Activity Report)SEC (Securities and Exchange Commission)SOC 2 (Service Organization Control 2)Strict LiabilityTransaction MonitoringVirtual AssetVirtual Asset Service Provider (VASP)Wash Trading
Dubai's independent regulator for virtual assets and crypto activities in the emirate

The Virtual Assets Regulatory Authority is Dubai's independent regulator established in 2022 to oversee and regulate virtual asset activities within the Emirate of Dubai, reflecting the UAE's strategic ambition to become a global digital asset hub while maintaining robust investor protection and financial crime prevention standards.

VARA operates under the Virtual Assets Law issued by the Ruler of Dubai, providing a comprehensive regulatory framework for virtual asset issuance, exchange, custody, transfer, and advisory services. The authority requires all Virtual Asset Service Providers operating in Dubai to obtain VARA licenses and comply with stringent requirements covering governance, capital adequacy, cybersecurity, market conduct, and anti-money laundering obligations. Major crypto exchanges including Binance, Crypto.com, and OKX have established VARA-regulated operations in Dubai.

VARA has taken an innovation-friendly yet rigorous approach, introducing the world's first comprehensive regulatory framework for marketing and promotion of virtual assets to retail investors. The authority collaborates internationally with regulators including MAS, ESMA, and other jurisdictions to harmonize standards and combat cross-border financial crime in the virtual asset sector.

Related Terms

Virtual Asset
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