UK-based fintech company Revolut has received approval from Dubai's Virtual Assets Regulatory Authority (VARA) to offer crypto-related services, marking a significant expansion into the Middle East ma
Dubai’s Virtual Assets Regulatory Authority (VARA) granted in-principle approval to UK-headquartered financial technology firm Revolut for offering broker-dealer, management and investment, as well as exchange services within the United Arab Emirates (UAE). This development comes after Revolut received a banking license from the Central Bank of the UAE for payment activities.
Revolut's head of digital assets in the UAE free zone establishment, Joseph Khair, stated that this approval will enable the company to introduce its trusted virtual asset services within a regulated environment. The company’s app and Revolut X exchange platform will allow users based in the UAE to buy, sell, and hold digital assets.
This regulatory green light follows other significant moves by Revolut towards expanding its crypto-related offerings globally. Earlier this year, the firm received a UK banking license and is currently pursuing similar applications for US banking charters and licensing in Peru as part of its broader expansion plans.
The UAE has been actively developing its cryptocurrency landscape with VARA listing 51 companies licensed to offer crypto-related services so far, including preliminary approval for Kraken’s parent company Payward. This regulatory environment is expected to attract more firms looking to enter the Middle Eastern market.
Revolut's decision comes amid increasing scrutiny and regulation of stablecoins like Tether (USDT). The firm plans to delist USDT starting in August for users within the European Economic Area and Switzerland, following a review under the European Union’s Markets in Crypto-Assets (MiCA) framework. This move underscores the growing importance of regulatory compliance in the crypto industry.
The approval from VARA is significant as it paves the way for Revolut to establish itself as a key player in the UAE's burgeoning digital asset market, potentially influencing other financial institutions and users within the region. Traders should monitor how this development impacts both local markets and global regulatory trends.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.