Virtual Assets Regulatory Authority (VARA) Publishes List Of Licensed VASPs
Dubai’s Virtual Assets Regulatory Authority (VARA) has released a public record of Licensed Virtual Asset Service Providers (VASPs) in an effort to promote transparency and protect consumers. This move comes as the number of unregistered VASPs, particularly in the cryptocurrency sector, continues to rise.
Exchanges Under Virtual Assets Regulatory Authority (VARA)
VARA currently categorizes VASPs into five categories. The list includes 14 entities that are now registered under VARA to operate in Dubai. Out of these, 11 VASPs have an active status, while three are pending.
Among the registered exchanges are Trek Lab’s Backpack Exchange, TOKO, and Binance. Binance and TOKO have both an exchange service license and a broker-dealer service license. This development is positive news for Binance after facing money laundering charges from the US Department of Justice.
Fasset and CoinMENA have received approval for broker services, while Bybit’s category is yet to be listed. Hex Trust is listed under a Custodian Services license.
Eighteen VASPs Fined Under Non-Compliance To VARA’s Rule
A recent market notice highlights that several entities within the virtual asset domain have incurred fines for not complying with VARA’s directives. These fines were imposed on 18 licensed VASPs operating under Dubai’s Department of Economy and Tourism.
This enforcement action is part of Dubai’s jurisdiction, and VARA emphasizes that it will continue to enforce compliance and impose fines. If regulatory gaps persist by the end of the year, unlicensed VASPs may face closure. Entities offering virtual asset services in Dubai are urged to engage with VARA promptly to avoid further penalties.
Hot Take: VARA’s Transparent Approach and Regulatory Actions
The publication of the list of licensed VASPs by VARA demonstrates a commitment to transparency and consumer protection in Dubai’s virtual asset industry. By enforcing licensing requirements, VARA aims to enhance security and scrutiny of virtual asset service providers.
The fines imposed on non-compliant VASPs underscore the seriousness of regulatory compliance in Dubai. This proactive approach by VARA ensures that entities operating in the virtual asset domain adhere to established rules and regulations.
Overall, VARA’s actions contribute to the development of a safer and more trustworthy virtual asset ecosystem in Dubai, benefiting both the industry and its participants.
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