Dubai’s Virtual Asset Regulatory Authority (VARA) has given local cryptocurrency firms until November 17 to register or obtain a license.
according to The statementif the company does not apply for a license, the company may be banned from operating in the emirate.
“VARA urges VASPs who have not submitted an application, missed a commercial licensing agency notification, or submitted an incomplete form to proactively contact them to avoid unintended regulatory consequences.”
More than 1,000 traditional companies have 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 continues to strengthen its position on the international stage.
UAE authorities first started talking about issuing cryptocurrency licenses in February 2022. Therefore, the country’s authorities will accelerate the influx of foreign cryptocurrency companies. The government has begun taking a so-called “hybrid approach” to regulation. This means that local foreign exchange regulators will jointly implement supervision with the central bank.
In February, Dubai authorities introduced new regulations for cryptocurrency companies, requiring them to obtain permits and appropriate licenses to operate in the city. A separate set of rules covers specific activities such as issuance, advisory services, storage and exchange services.