Dubai VARA Reminds VASPs of Mandatory License Code for Proprietary Trading

Dubai’s Virtual Assets Regulatory Authority (VARA) has issued a fresh reminder to Virtual Asset Service Providers (VASPs) and market participants on the mandatory licensing requirements for entities engaged in Virtual Asset (VA) Proprietary Trading.

Established under Law No. (4) of 2022, VARA continues to enforce its mandate to maintain a secure, transparent, and compliant virtual asset market in line with global best practices.

Mandatory Licensing for VA Proprietary Trading

Under VARA’s 2023 Regulations, any commercial entity in Dubai that actively invests its own portfolio in virtual assets must secure prior authorisation from the regulator. This includes obtaining a No Objection Certificate (NoC) from VARA.

Entities are also required to hold a valid commercial trade licence with the designated activity code for “VA Proprietary Trading.” Failure to maintain the correct licence or activity code constitutes a breach of VARA’s requirements.

Obligations for VASPs

VASPs operating in the Emirate must ensure that all their customers engaged in VA Proprietary Trading hold:

A valid, appropriately coded commercial licence
An official NoC issued by VARA

The regulator also confirmed that a consolidated registry of all such entities will be maintained at the Emirate level, ensuring transparency and oversight.

Commitment to Market Integrity

VARA emphasised that these measures are designed to uphold strong governance, financial stability, and responsible conduct across the sector. These requirements form part of Dubai’s broader commitment to building a resilient and globally recognised virtual asset hub.