ARP Digital has obtained a broker-dealer license from Dubai's VARA, enabling it to offer regulated digital asset conversions into the UAE dirham. This move expands its presence in the Gulf region.
Institutional digital asset infrastructure provider ARP Digital recently secured a broker-dealer license from Dubai’s Virtual Assets Regulatory Authority (VARA). The approval allows ARP Digital, based in Bahrain, to offer regulated conversions between digital assets and the UAE dirham. This marks its second regulatory presence after being licensed by the Central Bank of Bahrain.
According to ARP Digital, the new license covers United Arab Emirates-based corporates, capital markets participants, and qualified investors. The company will provide a regulated route for institutions to convert digital asset capital into local assets in the UAE market. In 2025, ARP Digital processed over $3.5 billion in volume for more than 450 institutional counterparties in Bahrain.
The approval comes as Dubai continues its expansion of the regulated digital asset sector. VARA has issued its 50th virtual asset service provider license since its establishment in 2022, overseeing the provision and exchange of virtual assets within the emirate’s jurisdiction. Flowdesk, another crypto market maker backed by Coinbase Ventures and BlackRock, also received a full broker-dealer license on Tuesday.
For traders and investors, this development is significant as it provides an additional regulated gateway for converting digital assets into fiat currency in the UAE. It aligns with Dubai's broader strategy to establish itself as a leading hub for digital asset trading and regulation.
The implications of ARP Digital’s new licensing are multifaceted. As more institutions gain access to regulated channels, the liquidity and legitimacy of digital assets may increase, potentially driving up demand and price stability in the region. Traders should watch how this license affects cross-border transactions involving UAE dirhams and other regional currencies.
In summary, ARP Digital’s expansion into Dubai through its broker-dealer license is a crucial step for institutional players looking to navigate the increasingly regulated digital asset landscape in the Middle East.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.