Dubai Virtual Assets Law (VARA)

Establishes the Dubai Virtual Assets Regulatory Authority (VARA) as a public corporation affiliated with the Dubai World Trade Centre Authority and empowers it to license, regulate and supervise virtual asset activities and service providers across all zones of the Emirate, including special development zones and free zones, but excluding the DIFC. Effective on publication in the Official Gazette.

Summary

Law No. 4 of 2022 is the instrument that created the Dubai Virtual Assets Regulatory Authority (VARA) and made a VARA permit a condition of carrying on any virtual asset activity in the Emirate. It was issued by the Ruler of Dubai on 28 February 2022 and, under Article 28, came into force on the day of its publication in the Official Gazette. It remains in force.

Article 3 applies the law to virtual asset services provided in all zones across the Emirate, including special development zones and free zones such as DMCC and Meydan, but excludes the Dubai International Financial Centre, which keeps its own DFSA regime. Article 2 defines a virtual asset as a digital representation of value that can be traded, transferred or used for payment or investment, and defines virtual tokens, virtual asset platforms, wallets and distributed ledger technology.

Articles 4 to 14 establish VARA as a public corporation with legal personality and financial and administrative autonomy, affiliated with the Dubai World Trade Centre Authority. Article 6 makes it the Emirate's competent regulator: it sets policy, licenses and supervises service providers, classifies virtual assets, regulates platforms and wallets, and under Article 6(13) coordinates with the Central Bank of the UAE on matters of protection and financial stability. Article 13 bars VARA itself from owning or issuing virtual assets.

The operative rule for business is Article 15: no person may conduct a regulated activity in the Emirate without first obtaining a permit from VARA, and an applicant must establish a business with a recognised legal form and obtain VARA approval before the commercial licence issues. Article 16(a) lists the seven permit activities: operating and managing platforms, exchange between virtual assets and fiat currency, exchange between virtual assets, transfer services, safekeeping, management or control of virtual assets, wallet services, and offering and trading virtual tokens. Article 17 voids any transfer of a permit made without VARA approval. Article 18 lets VARA suspend permit issuance, suspend a provider's activity in exceptional cases or halt dealings in a particular asset in the public interest.

Article 19 lets the Board set fees and Article 20 lets it set violations and fines by resolution; in addition to a fine VARA may suspend a permit for up to six months or revoke it and coordinate with the commercial licensing authority to cancel the provider's commercial licence. Article 21 gives designated staff inspection powers and Article 22 provides a written grievance to the Director General within 30 days, decided within 15 days by a committee whose decision is final. Article 27 repeals conflicting provisions of other legislation to the extent of the conflict. Federal virtual asset regulation under Cabinet Resolution No. 111 of 2022 and the AML law apply alongside this law.

Who it applies to

Any person conducting a virtual asset activity in the Emirate of Dubai, whether from the mainland, a special development zone or a free zone such as DMCC, Meydan or Dubai South; virtual asset platforms, exchanges, custodians, wallet providers and token issuers. Businesses inside the DIFC are excluded and fall under the DFSA instead.

Contents

English official text in 28 articles. Open the full text or jump to a provision:

1. Article 1
2. Article 2
3. Article 3
4. Article 4 — Pursuant to this Law, a public corporation named the �Dubai Virtual
5. Article 5
6. Article 6
7. Article 7
8. Article 8
9. Article 9
10. Article 10
11. Article 11
12. Article 12
13. Article 13
14. Article 14
15. Article 15
16. Article 16
17. Article 17
18. Article 18
19. Article 19
20. Article 20
21. Article 21
22. Article 22
23. Article 23 — All
24. Article 24
25. Article 25
26. Article 26
27. Article 27
28. Article 28

Key provisions

Obligations and deadlines

• Obtain a VARA permit before conducting any of the Article 16 activities anywhere in Dubai outside the DIFC.
• Establish a business with a recognised legal form and secure VARA approval before the commercial licence is issued (Article 15).
• Do not assign or transfer a permit without VARA's prior approval (Article 17).
• Cooperate with VARA inspections and provide records on request (Articles 21 and 23).
• Lodge any grievance against a VARA decision within 30 days of notice (Article 22).

Penalties

Article 20 leaves the schedule of violations and fines to Board resolutions. In addition to a fine, VARA may suspend a permit for a period not exceeding six months, or revoke it and coordinate with the competent commercial licensing authority to cancel the provider's commercial licence. Amounts owed to VARA are collected as government debts (Article 14).

History and citations

“Cites” and “Cited by” are built automatically from references in the full texts held in this library; they cover only instruments in the library.

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