Dubai-registered cryptocurrency companies gain permission to run operations across the entire United Arab Emirates.
In a significant move, the United Arab Emirates (UAE) has introduced a unified nationwide licensing framework for cryptocurrency services, allowing firms licensed in Dubai by the Virtual Assets Regulatory Authority (VARA) to operate seamlessly across all seven emirates.
This collaborative effort between Dubai’s VARA and the federal Securities and Commodities Authority (SCA) marks a departure from the previously fragmented and overlapping regulations. The new framework, launched in August 2025, is expected to bolster the country’s position as a global hub for digital assets.
Key features of this unified framework include:
- A single nationwide license issued by VARA or the SCA, eliminating the need for multiple licenses in different emirates.
- Regulatory coordination between VARA and SCA, with shared enforcement responsibilities, real-time data sharing, and joint inspections to ensure consistent regulatory standards nationwide.
- Harmonization and alignment of UAE regulations with global standards like the Financial Action Task Force (FATF) guidelines, addressing gaps in anti-money laundering (AML) and counter-terrorism financing (CTF) rules.
- Enhanced market transparency, reduced operational costs, and a stronger position as a competitive global hub for crypto innovation.
While the framework enables licensing reciprocity and cross-emirate service provision, it does not provide automatic “passporting” of licenses. Instead, it establishes mutual recognition and coordinated regulation between VARA and SCA.
The policy change is seen as a step towards regulatory harmonization in the UAE's digital economy, encouraging innovation in the digital asset sector. Analysts suggest that crypto and blockchain could play a role in facilitating cross-border payments and trade settlement mechanisms.
The announcement coincides with broader economic cooperation efforts between the UAE and global partners, including a recent pledge with Russia to double bilateral trade volumes. The new policy is a landmark regulatory shift, expected to attract more global blockchain players and accelerate capital inflows, partnerships, and talent migration into the UAE’s digital asset sector.
Market participants are closely watching for implementation guidelines, particularly regarding AML/KYC compliance, taxation, and cross-emirate dispute resolution. The UAE's digital asset sector is expected to benefit from this unified approach, fostering a more investor-friendly and innovation-supportive environment nationwide.
[1] Dubai Media Office (2025). "UAE Announces Unified Crypto Licensing Framework." [online] Available at: https://dubaimediaoffice.com/news/uae-announces-unified-crypto-licensing-framework
[2] VARA (2025). "Unified Crypto Licensing Framework." [online] Available at: https://vara.gov.ae/unified-crypto-licensing-framework
[3] SCA (2025). "Unified Crypto Licensing Framework." [online] Available at: https://sca.gov.ae/unified-crypto-licensing-framework
[4] FATF (2025). "FATF Standards and the Virtual Asset Sector." [online] Available at: https://www.fatf-gafi.org/publications/fatfrecommendations/documents/fatf-standards-and-the-virtual-asset-sector.html
[5] KPMG (2025). "UAE's Unified Crypto Licensing Framework: A Game Changer." [online] Available at: https://home.kpmg/ae/en/home/insights/2025/08/uaes-unified-crypto-licensing-framework-a-game-changer.html
- The new unified cryptocurrency licensing framework in the UAE, launched in August 2025, aims to drive growth in the digital asset sector, making the country a global hub for crypto innovation.
- The framework, a collaborative effort between Dubai's VARA and the federal Securities and Commodities Authority (SCA), introduces a single nationwide license, enhancing market transparency and reducing operational costs.
- As part of this regulatory shift, the UAE is aligning its regulations with global standards like the Financial Action Task Force (FATF) guidelines, ensuring consistent anti-money laundering (AML) and counter-terrorism financing (CTF) rules.
- The unified framework is seen as a significant step towards attracting more global blockchain players, accelerating capital inflows, partnerships, and talent migration into the UAE’s digital asset sector, fostering a more investor-friendly and innovation-supportive environment nationwide.
