Dubai has long sought to establish itself in the global virtual asset market. Law No. 4, adopted in 2022, was the key to this. He consolidated the creation of the Virtual Assets Regulatory Authority (VARA), which received the authority to control everything: licensing, compliance, disclosure of the final owners. Already in 2023, the Virtual Assets and Related Activities Regulations package appeared, consisting of 13 rulebooks. They cover marketing, AML, CTF, technical standards, and business transparency. The license is issued for a period of one year, and an extension request must be submitted 90 days in advance. It seems like a formality, but in fact it turns into a tool of discipline and control.
Strict Marketing And Compliance Rules
VARA has introduced strict frameworks for the promotion of virtual assets. Disclaimer is required. Loud promises of profitability are prohibited. Marketing materials must be stored for eight years. Violation is punishable by fines of up to 10 million dirhams. Repeated violation doubles the sanction. All this sounds harsh, but it is precisely such steps that build investor confidence. The market is rejecting the chaotic noise and gradually adopting the language of responsibility.
Transparency And Technological Commitment
Companies are required to implement AML and CTF procedures. Suspicious Activity Reporting has become the norm. The Travel Rule applies to every cross-border transaction. A Responsible Individual must be assigned. Ultimate Beneficial Owners are disclosed without exceptions. Even Decentralised Autonomous Organisations are required to comply. Additionally, ESG disclosure applies the use of renewable energy sources, reducing emissions from mining, and the purchase of carbon credits. The requirements are layered. The difficulty is high. But it is precisely in this complexity that the predictability of the market lies.
Market Growth In 2024 And 2025
The numbers are impressive. In 2024, the number of installations of crypto applications exceeded 15 million. The increase was 41% compared to the previous year. More than 27.67% of the population owns cryptocurrencies. The total investment reached $30 billion. In 2025, the market marked a record deal $ 2 billion invested in a crypto company. These data show that strict limits do not kill growth, they enhance it. The market is maturing, risks are decreasing, and trust is strengthening.
Coordination With Federal Agencies
VARA does not act in isolation. In 2024, an agreement was signed with the Securities and Commodities Authority. Dual licensing has become a reality. Now a license in Dubai automatically means registration at the federal level. The UAE Central Bank is strengthening its control over payment services and banking activities. The business faces stringent requirements comparable to the processes at UAE bank account opening, where customer verification is carried out carefully and without compromise. For investors, this creates a sense of confidence: the rules are not only written, they are being implemented.
Today, Dubai is creating a unique ecosystem where innovation goes hand in hand with control, and flexibility goes hand in hand with rigid boundaries. In 2025, the virtual asset market will become more mature than ever. Opportunities have expanded, rules have strengthened, and trust has increased. We invite all participants, beginners and experienced players to join the discussion. Study the laws, check strategies, and make decisions. The future of virtual assets is shaping up right now, and you have a chance to be inside the process rather than watching it from the sidelines.
Baseball fan, hustler, DJ, Bauhaus fan and identity designer. Producing at the crossroads of design and purpose to give life to your brand. I sometimes make random things with friends.
