DUBAI, UNITED ARAB EMIRATES / ACCESS Newswire / June 13, 2025 / Once renowned for its skyscrapers and luxury lifestyle, Dubai is now commanding global attention for a different reason: regulation. Over the past two years, the city has quietly built one of the world's most advanced frameworks for digital assets, positioning itself as a serious contender for global crypto leadership.
At the core of this effort is the Virtual Assets Regulatory Authority (VARA), established under Dubai Law No. 4 of 2022. As the first independent regulator of its kind, VARA is tasked with overseeing the full spectrum of digital asset activity within the Emirate. And it's attracting attention.
Major exchanges including Binance, Crypto.com, and OKX have moved fast to align themselves with Dubai's framework. This isn't marketing - it's a structural shift. Companies are responding to a global regulatory climate marked by confusion, enforcement action, and political volatility. Dubai, by contrast, offers structure.
THE REGULATORY FRAMEWORK
VARA's rulebooks are detailed, enforceable, and activity-specific. Seven categories define the licensing perimeter: advisory, broker-dealer, custody, exchange, lending and borrowing, settlement, and portfolio management. Each one is subject to financial requirements, internal control obligations, and ongoing supervision.
What sets Dubai apart isn't only the clarity, it's the tone. The regime is designed not to accommodate speculation but to support scalable, compliant infrastructure. Aligned with FATF standards, VARA's system encourages transparency and investor protection, rather than hype.
"This isn't a sandbox," says Stephan Korsgaard, CEO of Aston VIP, a UAE and UK-based consultancy specialising in digital asset regulation. "This is long-term economic positioning. The firms coming to Dubai aren't opportunists. They're builders looking for legal ground to stand on."
WHY FIRMS ARE RELOCATING
For many founders, regulation elsewhere remains unstable. In the United States, enforcement-first approaches have driven several firms offshore. In Europe, the incoming MiCA regime will take time to fully implement and may still lack the flexibility required by fast-moving ventures.
Dubai's regime, by contrast, is operational now. The government has backed VARA with clear laws, while simultaneously investing in broader fintech infrastructure. Through its D33 Economic Agenda, Dubai is allocating significant capital toward blockchain integration, digital identity programmes, and smart city technologies.
The opportunity for founders is significant.
A functioning legal framework
Full ownership options for foreign entrepreneurs
No personal income tax
Visa pathways for technical and executive talent
"We're seeing interest from Europe, Asia, and North America," says Mr. Korsgaard. "And it's not just from startups, it's institutional too. Dubai is now credible."
THE LICENSING PROCESS
While Dubai is open, it is not easy. Firms applying for a VARA licence must complete a detailed submission, including a regulatory business plan, compliance documentation, and over 150 disclosures across 16 categories.
Firms must also work with the Department of Economy and Tourism to obtain commercial licensing, and provide evidence of financial soundness. The process requires serious preparation, and often takes several months to complete.
Aston VIP is one of the few specialist firms in the region with deep, hands-on experience supporting applicants through the VARA process. In addition to managing full submissions for digital asset clients, Aston VIP also acts as a behind-the-scenes advisor to other service providers and agencies when they face complex VARA-related queries. Its services include regulatory policy drafting, compliance officer appointments, banking introductions, and entity structuring, along with detailed guidance on UAE-specific requirements such as economic substance and financial reporting.
LOOKING AHEAD
Dubai's ambitions are not short-term. The city is building a base from which digital assets can integrate with traditional finance - from tokenised funds and institutional custody to real-world asset issuance. It is doing so through regulation, not exemption.
For founders and executives looking for legal certainty, access to investment, and a route into emerging markets, Dubai is now one of the strongest options available.
For further guidance on the VARA licensing process, Aston VIP provides confidential consultations for digital asset firms.
Aston VIP
+971 4 518 2623
contact@aston.ae
SOURCE: Aston VIP
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