In an announcement on Tuesday, Dubai’s Virtual Assets Regulatory Authority (VARA) stated that all digital asset service providers in Dubai must complete their licensing applications by November 17, 2023.
VARA reported that it has already received over 1,000 applications from crypto firms looking to register under Dubai’s innovative regulatory regime.
Initially, the deadline for securing licenses was set for August 31, but it has now been extended to November 17.
Under VARA’s virtual asset service provider (VASP) license, approved firms gain the authority to offer crypto services exclusively to qualified investors and institutional customers in Dubai.
This regulatory initiative, which began in February, has reinforced Dubai’s reputation as a premier destination for blockchain and cryptocurrency companies.
VARA is emphasizing that crypto firms must proactively engage with the application process to avoid unintentional regulatory consequences.
Failure to meet the licensing requirements by the November 17 deadline will trigger enforcement measures by default.
For any VASP that has yet to submit their applications or may have overlooked notifications from commercial licensing authorities, it’s crucial to expedite the application process. The impending deadline applies to all, including those with incomplete submissions.
Note that VARA has also granted licenses to numerous virtual asset service providers that have demonstrated compliance with the regulations.
The most recent recipient of initial approval from the regulator is WadzPay, a prominent player in digital payments.