The Virtual Assets Regulatory Authority (VARA) in Dubai has asked local cryptocurrency companies to register or obtain a license no later than Nov. 17.
According to the statement, if companies do not apply for a license, companies may be prohibited from operating in the emirate.
“VARA is calling on VASPs that have yet to submit the applications, have missed the notifications from their commercial licensing authorities, or have submitted incomplete forms to proactively get in touch, to avoid unintended regulatory consequences.”VARA statement
More than 1,000 legacy companies have now applied to register under Dubai’s robust regulatory framework, demonstrating the city’s commitment to promoting an open and trusted virtual asset environment as the Emirate strengthens its place on the international stage.
The UAE authorities first started talking about issuing cryptocurrency licenses in February 2022. Thus, the country’s authorities would accelerate the influx of foreign cryptocurrency companies. The government has embarked on a so-called “hybrid approach” to regulation. This means that the local exchange regulator will exercise supervision jointly with the Central Bank.
In February, Dubai authorities introduced new regulations for crypto companies, requiring them to obtain permission and appropriate licenses to operate in the city. A separate set of rules concerns specific activities, such as issuance, consulting services, storage, and exchange services.