#What does ARP Digital's approval by VARA mean for its operations?
ARP Digital, a digital capital infrastructure platform supported by one of the Gulf’s oldest merchant families, has received in-principle approval from the Virtual Assets Regulatory Authority in Dubai to operate as a broker-dealer. This approval, granted on April 28, positions ARP Digital to facilitate regulated conversions of digital assets and stablecoins into UAE dirhams in the near future.
However, ARP Digital must still fulfill VARA’s comprehensive licensing requirements before it can begin serving clients in Dubai.
#How has ARP Digital prepared for this expansion?
ARP Digital already operates under a Category 3 license from the Central Bank of Bahrain, which it obtained in 2024. This license provided the firm with a regulated foundation on which to develop its FLOW platform. This platform supports institutional activities such as over-the-counter liquidity, cross-border settlements, and currency conversion services.
To date, ARP Digital has successfully processed more than $3.5 billion in transactions through over 450 institutional and corporate clients. The firm has also reported an impressive fourfold year-on-year growth in transaction volume for 2025.
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#Who are the key players behind ARP Digital?
The company was co-founded by Abdulaziz Kanoo and Abdulla Kanoo, who are members of the Kanoo Group. This conglomerate, originally established 135 years ago, boasts a rich history and extensive influence across Gulf commerce.
#What is the licensing process like with VARA?
The licensing process outlined by VARA requires candidates to demonstrate compliance with governance standards, custody protocols, risk management practices, and anti-money laundering measures. Currently, ARP Digital has not received public confirmation of its full VARA license. This lack of confirmation aligns with VARA's methodical approach to granting approvals.
Once fully licensed, ARP Digital will be equipped to facilitate regulated digital asset and stablecoin conversions into AED. This development will provide an institutional-grade on-ramp and off-ramp between cryptocurrencies and the national currency of the UAE.
#How does ARP Digital's position impact the Gulf's cryptocurrency environment?
Bahrain was a pioneer in establishing a central bank licensing framework for digital assets. Following this, Dubai introduced VARA, while Abu Dhabi has implemented its regulatory framework through the Abu Dhabi Global Market. ARP Digital, with its established institutional client base, regulatory experience in Bahrain, and the support of the Kanoo family, is well-positioned to pursue full licensing in Dubai. This move not only strengthens ARP Digital's operational capacity but also enhances its presence and credibility in the evolving Gulf cryptocurrency landscape.