The Virtual Assets Regulatory Authority in Dubai establishes an integrated work system and comprehensive regulatory frameworks

DUBAI, 23rd November / WAM / In line with its vision to enhance Dubai’s position as a leading global center for the virtual assets economy, and as part of its efforts to raise the sector’s contribution to 3% of the GDP, the Dubai Virtual Assets Regulatory Authority (VARA) continues to establish an advanced and secure regulatory system, considered among the most advanced in the world, with the aim of enabling the growth of this sector and building an innovative and attractive economic environment for future investments.

The Authority’s efforts have contributed to strengthening Dubai’s position and leading global markets as the largest licensed market for virtual assets, based on an integrated regulatory structure and comprehensive supervisory frameworks concerned with protecting service providers and consumers, enhancing transparency and investor confidence, and creating a competitive and responsible environment that supports the sustainable growth of the sector at the global level.

This progress reflects the proactive vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, may God protect him, who three years ago issued the first law of its kind to regulate virtual assets, and directed the establishment of the Dubai Virtual Assets Regulatory Authority (VARA), in a strategic step that strengthened the emirate’s position in the future economic and financial sectors.

Since its establishment, the Dubai Virtual Assets Regulatory Authority has succeeded in attracting global institutions and industry leaders thanks to its proactive focus on responsible empowerment and promoting a sustainable business environment.

The Authority also succeeded in implementing a comprehensive enforcement program in coordination with the competent authorities, which directly contributed to reducing unlicensed activities and raising the level of integrity and discipline in the sector, to constitute a standard model for responsible global markets.

The continuous monitoring and supervision system is based on zero tolerance for any violating activities that may expose consumers to risks, in parallel with the integrated work between regulatory authorities, law enforcement agencies, and judicial authorities to ensure that all operators bear their full responsibilities towards any risks that may arise from their practices.

The Dubai Virtual Assets Regulatory Authority (VARA) has achieved notable achievements since its establishment, reflecting the Emirate of Dubai’s commitment to developing an advanced regulatory environment that focuses on a strict and balanced regulatory system and a legislative structure that supports the growth of the digital economy. These efforts have contributed to enhancing the confidence of investors and international institutions in Dubai as an ideal destination for the future of the financial sector.

As traditional finance (TradFi) and decentralized finance (DeFi) markets continue to converge, Dubai continues its commitment to developing advanced regulatory frameworks and stimulating responsible innovation, opening new horizons for broader and more inclusive economic participation.

Deepa Raja Carbon, Executive Director and Vice Chairman of the Board of Directors of the Dubai Virtual Assets Regulatory Authority (VARA), said: Dubai worked early on, with the increasing decentralized and cross-border nature of the global financial sector, within a proactive vision to pioneer new economic and financial sectors. Our priority at the Virtual Assets Regulatory Authority was to create a regulatory and legal environment that takes into account the needs of the global market and is based on the full protection of all trading parties, to establish Dubai as an advanced center for the future economy in the field of virtual assets. This legislative environment and the subsequent clear and strict mechanisms and procedures for enforcing the law have strengthened the high-level global confidence in the virtual assets market in Dubai, where compliance with laws, regulations and legal accountability is the only way for everyone seeking to join this market.

The Authority began its regulatory journey by launching marketing regulations to ensure transparency of communication, followed by educational programs for consumers, in addition to close cooperation with working parties to establish governance standards. The rapid and fair enforcement program contributed to enhancing confidence, reducing complaints, and reducing the number of unlicensed operators.

The Virtual Assets Regulatory Authority in Dubai works in cooperation with federal and local authorities, including: the Securities and Commodities Authority, the Central Bank, the National Committee to Combat Money Laundering and Combating the Financing of Terrorism, the Dubai Economic Security Centre, the Financial Information Unit, the Department of Economy and Tourism, Dubai Police, the Dubai Electronic Security Centre, the Communications and Digital Government Regulatory Authority, the Public Prosecution, the legal departments, and the economic free zones.

These partnerships aim to ensure effective coordination and complete transparency regarding enforcement procedures, while the authority publishes final enforcement decisions on its website, and collections and asset recovery operations are referred to the competent authorities to ensure governance and accountability.

In parallel with the stringency of the regulatory framework, Dubai has witnessed strong and disciplined growth in the sector, with the trading volume in licensed virtual asset markets reaching 2.5 trillion dirhams since the beginning of 2025, and assets under management reaching more than 9.6 billion dirhams.

The emirate has more than 40 licensed service providers and more than 600 registered providers, while more than 250 license applications are currently being processed, with 300 international companies attracted to Dubai, providing their services to more than 3 million traders and investors.

Matthew White, CEO of the Virtual Assets Regulatory Authority, said: Dubai has succeeded in combining integrated regulatory frameworks and stimulating commitment and responsibility in transactions, which has enhanced the attractiveness of the virtual assets market and the sustainability of its growth.

He added: We continue to develop safe and flexible systems capable of keeping pace with global transformations, and to establish Dubai as the most reliable destination that leads the future of the new economy.

• For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Related