The Virtual Assets Regulatory Authority (VARA) in Dubai has issued its 50th license to a virtual asset service provider (VASP), marking a significant milestone in the emirate’s effort to establish itself as a global center for cryptocurrency and digital assets. The latest license was granted to Tribe Tokenisation FZE, a platform focused on tokenized assets.
While the licensing milestone highlights the rapid expansion of Dubai’s crypto market, VARA officials clarified that holding a license does not necessarily indicate active commercial operations. Newly licensed firms often undergo a controlled operationalization phase before officially launching services or onboarding customers. By the end of the previous year, VARA had classified 39 of its licensed VASPs as fully operational, with updated figures expected for the current year.
Dubai launched VARA in March 2022 as a dedicated regulator for virtual assets, a strategic move designed to attract crypto businesses through a standalone licensing framework. This regulatory approach is increasingly drawing comparisons with other major financial hubs competing for crypto market share, such as Hong Kong and Singapore. VARA’s 50 licensed VASPs outnumber the 37 major payment institutions authorized to offer digital payment token services in Singapore, which regulates crypto under a broader payments authority rather than a dedicated crypto regulator. Similarly, Hong Kong’s Securities and Futures Commission has authorized 13 virtual asset trading platforms, a narrower category limited specifically to platform operators.
The VARA spokesperson noted that Dubai’s growth in the crypto sector stems from its activity-based regulatory framework, which evaluates not only licensing numbers but also transaction volumes, assets under management, employment levels, and audited financial data. This comprehensive regulatory environment aligns with Dubai’s broader financial ecosystem and aims to foster sustainable development in the virtual asset industry.