Dubai's Progressive Regulations Establish It As The World's Largest Licensed Virtual Assets Market

Dubai is making strides to become a leading global centre for virtual assets, aiming to contribute 3% of its GDP through this sector. The Virtual Assets Regulatory Authority (VARA) is at the forefront, ensuring a secure and progressive environment for virtual assets. Established in 2022 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, VARA focuses on investor protection and market stability to foster credibility and sustainable growth.

VARA's regulatory framework has attracted global interest and industry leaders by focusing on responsible enablement. Its comprehensive enforcement programme, coordinated with relevant authorities, has curbed unlicensed activities and reinforced market integrity. This approach sets a benchmark for a responsible global marketplace.

The authority's achievements highlight Dubai's dedication to creating an advanced regulatory environment for the future economy. VARA has built a robust supervisory system that enhances transparency, protects investors, and supports the digital economy's growth. These measures have secured consumer interests and reinforced investor confidence in Dubai as a preferred financial hub.

VARA collaborates with various federal and local entities like the Securities and Commodities Authority (SCA) and the Central Bank of the UAE (CBUAE). These partnerships ensure effective coordination and transparency in enforcement actions. Concluded enforcement decisions are published on VARA’s website, maintaining strong governance and accountability.

As traditional finance merges with decentralised finance, Dubai remains committed to evolving its regulatory framework. Deepa Raja Carbon, VARA’s Managing Director, stated that Dubai aims to lead the new economy by creating a passportable model focused on safety. "Our VA market operates on ‘trust’, where compliance and accountability are essential," she said.

VARA introduced Marketing Regulations as an initial step to set clear industry rules. Structured education for consumers followed, aligning objectives with governance standards. This proactive approach reduced complaints and unlicensed operators while reinforcing credibility.

Growth of Virtual Asset Market

The virtual asset market in Dubai has experienced controlled growth alongside VARA's rigorous regulations. Year-to-date transaction volumes across regulated entities under VARA have reached nearly AED 2.5 trillion, with assets under management exceeding AED 9.6 billion in 2025.

Dubai hosts over 40 licensed virtual asset service providers (VASPs) and more than 600 registered service providers. The city processes over 250 license applications and welcomes 300 global first-time entrants to the UAE, servicing over 3 million investors and traders from Dubai.

A Secure Ecosystem

Matthew White, Chief Executive Officer, commented on VARA’s progress: "By combining clear regulatory frameworks with responsible market conduct, VARA fosters innovation while protecting public interest." As Dubai’s virtual asset market matures, VARA remains committed to building a secure ecosystem that cements Dubai’s position as a trusted hub for the New Economy.

With inputs from WAM