Dubai’s Virtual Assets Regulatory Authority has reached a significant milestone by granting its 50th license to a virtual asset service provider, demonstrating its commitment to regulating the crypto market. This achievement, which might have seemed overly ambitious four years ago when VARA was established, marks a notable moment for the industry in the region.
However, it is important to understand that obtaining a license differs from being fully operational. As of the end of 2025, only 39 of the licensed virtual asset service providers were actively conducting business. This indicates that a notable portion of the licensed firms are still transitioning to becoming fully operational.
#What Is the Difference Between Licensed and Operational?
VARA takes an approach to regulation that differentiates between fully operational licenses, which allow companies to engage in business activities, and In-Principle Approvals, which indicate preliminary approval but do not permit commercial transactions. By May 2026, VARA's public register showed 49 licensed entities active in the market, with CoinCorner Virtual Assets Broker & Dealer Services L.L.C. being the latest licensee as of May 5, 2026.
#Who Are the Recent Licensees?
Among the recent firms to receive licensing, LTP became an institutional broker-dealer in April 2026. This categorization reveals VARA’s strategic interest in attracting firms that cater primarily to professional and institutional clients instead of casual traders. Additionally, Animoca Brands Middle East, part of a Web3 conglomerate based in Hong Kong, was granted a license in February 2026. VARA now oversees a range of licensing categories, which include exchanges, custody solutions, broker-dealer services, and token issuance.
#Why Is Dubai's Regulatory Approach Gaining Attention?
Since its inception in early 2022 under Dubai Law No. 4/2022, VARA has positioned itself as one of the earliest and most dedicated virtual asset regulators globally. The authority has focused recent regulatory updates on combating market abuse and enforcing anti-money laundering protocols. With new rules being implemented throughout 2025 and 2026, VARA is also looking into burgeoning categories like stablecoins and real-world asset tokens, while intensifying enforcement actions against unlicensed operations.
#What Does This Mean for Investors?
For potential investors looking at the Middle Eastern crypto landscape, VARA’s regulatory framework offers clarity by distinguishing between full licenses and In-Principle Approvals. This distinction helps identify which firms are completely ready to engage in business and those still finalizing their operational strategies. The licensing of LTP as an institutional broker-dealer in April 2026 signals a trend expected to encourage larger investments from family offices and funds located in the MENA region.