VARA Introduces Version 2.0 of Its Rulebooks for Crypto Companies in Dubai

The main body responsible for regulating cryptocurrencies in Dubai is the Virtual Assets Regulatory Authority (VARA). It was created in 2022 to control and manage all activities related to virtual assets such as cryptocurrencies, tokens, and blockchain services.

Dubai, the bustling metropolis known for its innovation and rapid technological advancements, has emerged as a leading hub for cryptocurrencies in the Middle East. The main body responsible for regulating cryptocurrencies in Dubai is the Virtual Assets Regulatory Authority (VARA).

Created in 2022, VARA has been tasked with overseeing and managing all activities related to virtual assets, which encompasses cryptocurrencies, tokens, and blockchain services. The role of VARA is crucial in fostering a safe and compliant ecosystem for crypto operations within Dubai.

Earlier this year, in May 2025, VARA unveiled Version 2.0 of its rulebooks. These are updated guidelines and rules for all crypto companies and service providers operating in Dubai. The updated rules are a comprehensive set of regulations that span several types of crypto activity.

Providing financial advice on cryptocurrencies

Buying and selling virtual assets

Offering custody or safe storage of crypto

Operating exchanges for trading crypto

Lending and borrowing using crypto

Managing virtual asset portfolios

Handling the transfer and settlement of crypto payments

The new rules are designed to ensure that all crypto activities are carried out safely, legally, and without causing any harm to investors or the financial system. They also help companies to understand what is expected of them when applying for a crypto license from VARA and operating in Dubai.

Why is Dubai leading in crypto investments?

Dubai has become a magnet for crypto investors due to several key factors that set the city apart in the rapidly evolving cryptocurrency landscape.

Crypto-friendly legal framework

Dubai's government has taken a proactive approach in establishing a comprehensive and supportive legal framework for cryptocurrencies. This includes clear rules and guidelines for crypto companies, ensuring a transparent and predictable operating environment. In contrast, some other countries in the region still have underdeveloped or ambiguous crypto regulations, making it difficult for companies to navigate.

Open attitude towards blockchain technology

Dubai has adopted a positive and open attitude towards blockchain technology. The government sees blockchain as a key driver of innovation and economic growth, and it is actively exploring new use cases for the technology in various sectors of the economy. This stands in contrast to some other countries where there might be more skepticism or resistance to new technologies from government officials.

Proactive approach by the Virtual Assets Regulatory Authority (VARA)

The Virtual Assets Regulatory Authority (VARA) has been actively engaging with crypto companies and investors. This includes organizing industry events, attending international crypto conferences, and regularly publishing updates and announcements on its website and social media channels. Such open communication helps to build trust and keep stakeholders informed.

In comparison, some other countries' main financial bodies focus largely on traditional banking and investment activities, with less attention on emerging technologies like cryptocurrencies.

This focused attention on crypto has helped to attract more companies and investors to Dubai. It also helps to ensure that crypto activities are carried out in a safe and compliant manner.