Dubai’s Virtual Asset Regulatory Authority (VARA) has announced a new deadline for all crypto-related businesses to clear their licensing papers. The authority, which issues licenses to crypto firms, has set November 17 as the final date for digital asset service providers to obtain licenses.
Deadline for Submission and Notifications
According to a local English news daily, the November 17 deadline applies to firms that have yet to submit their applications or missed notifications. VARA has urged these businesses to speed up the process, emphasizing the need for proactive communication to avoid unintended regulatory consequences.
A failure to meet the licensing requirements would result in enforcement mechanisms being triggered by default, warned the regulatory body.
Regulatory Certainty and Financial Security
Dubai’s digital assets regulator, VARA, introduced its Virtual Assets and Related Activities Regulations 2023 earlier this year. The regulatory body also adopted several rulebooks, including compulsory and activity-specific ones, as well as a virtual asset issuance rulebook.
These regulations have brought much-anticipated regulatory certainty to the crypto industry and offer financial security to investors in Dubai.
Strict Enforcement and Penalties
VARA has demonstrated its strict enforcement of the regulations by penalizing crypto exchanges, such as OPNX, and its co-founders, for failing to abide by the rules.
This enforcement highlights the overall effectiveness of the UAE’s anti-financial crimes compliance framework.
Licenses and Approvals
VARA has issued licenses to numerous virtual asset service providers (VASPs) that comply with the regulations.
Recently, crypto firm WadzPay received an “initial approval” from the regulator, while the crypto wallet provider Backpack secured a VASP license and launched the Backpack Exchange.
Nomura’s collaborative enterprise, Komainu, also celebrated the acquisition of a full-fledged operational license from VARA in August. Komainu had previously obtained its Minimal Viable Product (MVP) license in November 2022.
Furthermore, Binance, the world’s largest crypto exchange, has received an operational MVP from VARA and announced its intent to offer cryptocurrency exchange and virtual asset broker-dealer services in Dubai.
