Dubai Virtual Assets Law and VARA: Licensing, Custody and Marketing Rules

Dubai's virtual-asset regime is now mature enough that the phrase “VARA regulated” is no longer very informative on its own.

Law No. 4 of 2022 created the Virtual Assets Regulatory Authority, but the legal position of an exchange, custodian, broker or token issuer depends on much more than the existence of that law.

Users need to know:

• which legal entity provides the service;
• whether that entity appears in VARA's Public Register;
• whether it holds a full VASP licence or only In-Principle Approval;
• which activities the licence actually covers;
• whether the product is offered inside VARA's territorial perimeter;
• which version of the relevant rulebook applies.

Those distinctions became even more important in 2026.

VARA now publishes activity-specific permissions in its Public Register, including a separate designation for Exchange Services that include Exchange Traded Derivative Services. In March 2026, it also updated the Exchange Services Rulebook with detailed requirements for crypto derivatives covering areas such as client suitability, margin, leverage, segregation and insurance funds.

The practical lesson is simple:

A Dubai company registration, an In-Principle Approval or a licence for one virtual-asset activity should never be treated as permission for every crypto product offered under the same brand.

VARA does not regulate the DIFC

The first boundary is geographic.

VARA regulates virtual assets and virtual-asset activities across the Emirate of Dubai, including relevant free zones and special development zones, except the Dubai International Financial Centre (DIFC).

That means the following descriptions are not interchangeable:

• Dubai-regulated;
• VARA-regulated;
• DIFC-regulated;
• UAE-regulated.

A company based in Dubai can fall under a different regulatory framework depending on where the relevant legal entity and financial activity sit.

The DIFC has its own financial-services regime administered by the Dubai Financial Services Authority. The DFSA's updated Crypto Token framework came into force on January 12, 2026 and applies to relevant financial services involving Crypto Tokens in or from the DIFC.

So a provider review should begin with two questions:

• Is the relevant entity inside or outside the DIFC？
• Which regulator and licence apply to the service being used？

A Dubai address by itself does not answer either question.

The Dubai framework has several legal layers

VARA regulation is not contained in one document.

The structure includes:

• Law No. 4 of 2022
• Virtual Assets and Related Activities Regulations
• Compulsory Rulebooks
• Activity-specific Rulebooks
• Marketing Regulations
• Directives, guidance and licence conditions
• Individual VASP permissions shown in the Public Register

Law No. 4 establishes VARA and the regulatory perimeter.

The Regulations define the broader licensing and supervisory framework.

The rulebooks then determine how a licensed business must operate.

That distinction matters because reading only the 2022 law does not tell a user the current operational requirements for custody, derivatives or exchange activity in 2026.

Four compulsory rulebooks apply across licensed VASPs

VARA's licensing framework identifies four compulsory rulebooks for VASPs:

• Company Rulebook
• Compliance and Risk Management Rulebook
• Technology and Information Rulebook
• Market Conduct Rulebook

These apply alongside the activity-specific rules relevant to the services the firm is authorised to provide.

For example, an exchange can also need to comply with the Exchange Services Rulebook.

A custodian needs the Custody Services Rulebook.

A lending business needs the Lending and Borrowing Services Rulebook.

A company conducting several activities must therefore consider the requirements cumulatively.

It cannot select whichever single rulebook is most convenient.

The “2023 Regulations” have been updated since 2023

The official framework continues to use the title:

Virtual Assets and Related Activities Regulations 2023

That title can be misleading if interpreted as a publication frozen in 2023.

VARA maintains version histories, and major parts of the regulatory framework were updated in 2025 and 2026.

For example, several current activity rulebooks show an effective date of June 19, 2025, while Exchange Traded Derivative Services rules were updated again on March 31, 2026.

This creates an important research rule:

The year in the title is not the same thing as the effective date of the current text.

Any serious provider review should record:

• the page or rulebook used;
• the version;
• effective date;
• date of the regulatory check.

Old screenshots and old PDF copies can become misleading even when their document title still looks current.

VARA licences are activity-specific

One of the biggest mistakes in Dubai crypto research is writing:

“Company X has a VARA licence.”

That statement can be technically true while telling users very little about what the company may actually do.

VARA distinguishes several virtual-asset activities, including:

• Advisory Services;
• Broker-Dealer Services;
• Custody Services;
• Exchange Services;
• Lending and Borrowing Services;
• Management and Investment Services;
• Transfer and Settlement Services;
• relevant Virtual Asset Issuance.

The Public Register shows the authorised activities attached to individual providers.

A company licensed only for Broker-Dealer Services should not automatically be described as authorised for custody.

An exchange licence should not automatically be extended to lending.

A custody licence does not automatically permit operating a trading venue.

The relevant test is:

Legal entity → Licence status → Authorised activity → Product used

Exchange-traded derivatives now require explicit authorisation

This distinction became more important in 2026.

VARA's Exchange Services Rulebook now contains a dedicated section for Exchange Traded Derivative Services, or ETD Services.

The rules state that only a VASP licensed for Exchange Services may provide ETD Services.

But holding an Exchange Services licence is not enough by itself.

The VASP may offer derivatives only where VARA has explicitly authorised ETD Services and that authorisation is expressly stated in the licence.

This means the correct verification for an exchange advertising perpetual futures or similar derivatives is not simply:

Does it have an Exchange Services licence？

It is:

Does its current VARA licence explicitly include Exchange Traded Derivative Services？

The Public Register now makes this distinction visible.

VARA's 2026 derivatives rules go beyond a licence label

The updated ETD framework covers more than permission to list futures.

Requirements address areas including:

• client suitability and assessment;
• client communications and disclosures;
• margin;
• leverage limits;
• segregation of ETD Services;
• risk management;
• insurance funds;
• underlying-asset market quality.

VARA also requires authorised ETD providers to consider factors such as the price history and liquidity of the underlying assets.

That is important because derivatives can create risks that ordinary spot trading does not.

A user can lose money on a spot asset because the price falls.

A leveraged derivatives user can also face:

• forced liquidation;
• margin calls;
• funding or holding costs;
• rapid loss of collateral.

The regulatory framework therefore treats exchange-traded derivatives as a distinct activity rather than merely an extra tab inside a crypto exchange.

Derivatives providers need an insurance fund unless VARA approves otherwise

The ETD rules also require providers to establish and maintain an Insurance Fund, unless VARA approves otherwise.

The fund is intended to address negative equity balances that cannot be resolved through the required close-out process under extreme but plausible market conditions.

Permitted fund assets can include specified virtual assets, AED, USD and other assets accepted by VARA.

This should not be confused with government deposit insurance.

An exchange insurance fund is a regulatory risk-management mechanism for derivatives operations.

It does not mean every customer loss from leveraged trading will be reimbursed.

Market losses remain market losses.

In-Principle Approval is not a full VASP licence

VARA's Public Register separates:

• Licensed VASPs
• In-Principle Approval

The difference is fundamental.

VARA explicitly states that an applicant holding only IPA is strictly prohibited from:

• initiating operations;
• conducting virtual-asset activities;
• servicing clients;

until it has obtained its full VASP licence.

IPA is therefore a licensing milestone.

It is not permission to operate a customer business.

The following statements are not equivalent:

“VARA granted the company In-Principle Approval.”

and:

“The company is licensed by VARA to serve customers.”

An article, exchange page or investor presentation that collapses those two stages can materially overstate regulatory status.

Free-zone incorporation is also not a VASP licence

Dubai has many free zones, and a company can validly incorporate there without holding a VARA licence for regulated virtual-asset activities.

Corporate registration proves the existence of the company.

It does not establish that the company can legally provide:

• exchange services;
• broker-dealer services;
• custody;
• lending;
• derivatives;
• other regulated VA activities.

This matters when reviewing exchange claims such as:

“Registered in Dubai.”

The next question should be:

Registered as what？

A company registration number and a VASP licence answer different legal questions.

The VARA Public Register should be the starting point

The strongest practical evidence for current VARA status is the official Public Register.

It lists providers and identifies information including:

• legal entity name;
• licence type;
• reference number;
• authorised activities;
• licence issue date;
• status.

It also separates fully licensed VASPs from IPA applicants.

Because the register changes, a static provider count should not become the central fact in a research article.

Instead, record the date of the check and verify the exact entity when evaluating a platform.

Official register:

https://www.vara.ae/en/licenses-and-register/public-register/

Brand names are weaker evidence than legal entities

Global crypto companies commonly operate through multiple companies.

A brand might use:

• a Dubai entity;
• a DIFC entity;
• a European entity;
• an offshore entity;
• separate custody companies.

The fact that one company within the group has a VARA licence does not prove that every customer worldwide contracts with that company.

The user's Terms of Service remain critical.

Compare:

Brand → Customer agreement → Legal entity

with:

VARA Public Register → Legal entity → Authorised activities

The two should match for the relevant Dubai service.

If they do not, the licence claim requires further investigation.

Custody has a particularly strict legal structure

VARA's Custody Services Rulebook contains an important structural requirement.

A VASP providing Custody Services generally must be an independent legal entity, separate from group companies providing other VA Activities or linked services.

The specified exception concerns Transfer and Settlement Services.

This is stronger than simply requiring an exchange to say customer assets are segregated.

The rule is intended to create legal separation around the custody function itself.

For users, that makes the custody entity worth identifying independently from the trading entity.

A platform may present both functions inside one app while the regulated legal structure separates them behind the interface.

Custody is more than using cold wallets

Marketing often reduces custody security to statements such as:

“Most funds are stored offline.”

Cold storage can be useful.

It is only one part of custody risk.

A meaningful custody review should also ask:

• Who controls the keys？
• How many approvals are required to move assets？
• How are permissions created and revoked？
• How are customer positions recorded？
• How often are records reconciled？
• What happens after a security incident？
• What outsourcing arrangements exist？
• What does the customer contract say about return of assets？
• Which legal entity holds the custody licence？

A cold wallet does not answer those questions.

Custody, staking and lending should be analysed separately

A customer can begin with ordinary custody and then authorise the platform to use assets in another product.

Examples can include:

• staking;
• lending;
• yield products;
• collateral arrangements.

Once the asset enters another arrangement, additional terms can apply.

The correct question is not merely:

Is the exchange a licensed custodian？

It is also:

What authority did I give the platform when I entered this product？

A custody licence does not make every lending or yield product economically equivalent to custody.

VARA also regulates virtual-asset issuance

Dubai's framework covers issuance as well as intermediaries.

The Virtual Asset Issuance Rulebook distinguishes different issuance categories and imposes requirements around matters such as:

• prior approval;
• disclosures;
• white papers;
• risk disclosures;
• ongoing compliance.

This is another area where the phrase:

“Token issued in Dubai”

is too vague.

The relevant questions include:

• What kind of token is it？
• What rights does it represent？
• Who issues it？
• Does VARA regulate the issuance？
• Is another UAE regulator responsible？
• What approvals apply？

The regulatory path depends on the structure of the asset.

Fiat-referenced virtual assets have additional requirements

VARA's issuance framework includes specific rules for Fiat-Referenced Virtual Assets, or FRVAs.

These rules address areas including:

• reserve assets;
• stable backing;
• redemption;
• audits and reporting;
• disclosures;
• marketing;
• capital.

That makes a fiat-referenced token more than an ordinary token that simply claims to stay near a currency value.

The issuer needs a structure capable of supporting the stable-value promise.

A useful analysis should ask:

• Which fiat currency is referenced？
• What backs the token？
• Who holds the reserve？
• How liquid are reserve assets？
• What redemption right exists？
• What reports are published？
• Which regulator has jurisdiction？

AED-referenced stablecoins sit outside VARA's FRVA approval route

One of the most important jurisdictional boundaries concerns the UAE dirham.

VARA's FRVA rules explicitly state that a virtual asset purporting to maintain a stable value relative to AED will not be approved under the VARA FRVA framework.

AED-referenced stablecoins remain within the sole and exclusive regulatory purview of the Central Bank of the UAE.

This creates another reason the statement:

“VARA regulates stablecoins in Dubai”

is too broad.

For a USD- or other approved fiat-referenced asset, VARA's FRVA framework may be relevant.

For an AED-referenced payment token, the regulatory analysis moves to the CBUAE framework.

The reference currency therefore changes the regulator.

Reserve assets are not the same as client assets

VARA's FRVA rules define reserve assets separately from Client Money and Client Virtual Assets.

That distinction matters.

The assets backing a stablecoin serve a specific economic function: supporting the value and redemption obligations of the token.

They should not be casually grouped together with:

• normal exchange customer deposits;
• the issuer's corporate treasury;
• operating capital.

For users, the relevant reserve questions include:

• reserve composition;
• custody;
• liquidity;
• valuation;
• redemption arrangements;
• audit and reporting.

A large company balance sheet is not a substitute for a stablecoin reserve structure.

Marketing rules can apply even to companies without a VARA licence

Dubai's crypto marketing regime is broader than many users expect.

VARA's Regulations on the Marketing of Virtual Assets and Related Activities 2024 apply to marketing in or targeting the UAE under the conditions set out in those regulations.

The rules are not limited to already licensed VASPs.

VARA states that the requirements apply to relevant domestic and foreign entities and market participants.

This is important because a company cannot avoid marketing rules simply by saying:

“We are not yet a licensed exchange.”

Marketing and licensing are separate regulatory questions.

Crypto marketing must be fair, clear and not misleading

VARA's marketing guidance focuses on the overall impression created for the audience.

The regulator does not assess only the literal accuracy of one sentence.

Context matters.

The guidance explains that the requirement to be fair, clear and not misleading can apply differently depending on the format.

That can include:

• advertisements;
• influencer promotions;
• social posts;
• short videos;
• memes;
• longer articles.

A meme is not outside financial-promotion rules simply because it is humorous or informal.

A short video cannot hide material risk behind a technically accurate footnote that viewers are unlikely to notice.

Marketing a VA activity generally requires a licensed provider behind it

Under VARA's marketing framework, marketing of a regulated VA Activity must generally be carried out by a VASP licensed for that activity, or on behalf of and approved by such a VASP, subject to the applicable rules.

This reinforces the activity-specific nature of the framework.

A company should not advertise derivatives merely because an affiliated entity holds some other VARA licence.

The underlying licensed activity needs to match the service being promoted.

Memecoin marketing has received specific regulatory attention

VARA issued a consumer and marketplace alert concerning memecoins in February 2025.

The regulator highlighted risks including:

• extreme volatility;
• market manipulation;
• hype-driven pricing;
• misleading promotional claims;
• liquidity shortages;
• scams.

The significance of the warning is not that every memecoin is prohibited.

It is that listing or marketing a token does not amount to VARA endorsing its investment value.

A token can be legally traded and still be highly speculative.

Regulatory permission and economic quality are separate questions.

Anonymity-enhanced cryptocurrencies face stricter treatment

VARA's regulatory framework prohibits issuance of defined Anonymity-Enhanced Cryptocurrencies in the Emirate and related regulated virtual-asset activities within its scope.

Marketing of such assets or related VA Activities is also prohibited under the Marketing Regulations.

The exact regulatory result depends on the relevant definitions and facts.

A token should not be classified merely from its branding or from a casual description that it is “private.”

But where the regulatory definition applies, the restriction is materially stronger than an ordinary risk warning.

Market conduct is part of the framework

VARA regulation also addresses how virtual-asset markets operate.

The Market Conduct Rulebook and broader Regulations address areas including:

• inside information;
• insider dealing;
• market manipulation;
• conflicts;
• customer communications.

This matters because crypto regulation is not only about custody and licensing.

A regulated trading venue also needs systems and controls around the integrity of trading activity.

For users, a provider's licence should therefore not be interpreted as merely permission to hold coins.

The regulatory framework reaches into how the business operates the market.

A VARA licence does not guarantee token value

The fact that a platform is VARA licensed does not mean VARA guarantees:

• customer profits;
• token prices;
• project quality;
• market liquidity;
• future availability of an asset.

A regulated exchange can list an asset that later falls sharply.

A licensed broker can execute a trade that loses money.

A regulated custodian can safeguard an asset whose market value goes to zero.

Regulation addresses the conduct and structure of the provider.

It does not eliminate investment risk.

A VARA licence does not mean every customer loss is insured

The same principle applies to custody and operational risk.

VARA imposes significant requirements on licensed firms, but that does not create a universal government compensation guarantee for all customer crypto.

The outcome of a loss can depend on:

• how the loss occurred;
• the licensed activity;
• contractual terms;
• custody arrangements;
• insurance;
• whether the loss is attributable to the provider;
• applicable insolvency and civil law.

A user should therefore read actual customer terms rather than assume “regulated in Dubai” means assets are guaranteed.

The Public Register also helps identify derivatives permission

The 2026 Public Register is particularly useful because it can distinguish among:

• Broker-Dealer Services;
• Management and Investment Services;
• Custody Services;
• Exchange Services;
• Category 1 VA Issuance;
• Lending and Borrowing Services;
• Advisory Services;
• Exchange Services including Exchange Traded Derivative Services.

This makes the register much more useful than a simple list of licensed brands.

For an exchange advertising perpetual futures, the derivatives activity should be checked directly.

For a custodian, the Custody Services permission should be checked.

For an issuer, the relevant issuance status should be checked.

The licence needs to match the product.

How to verify a Dubai crypto provider

A reliable verification process can be completed in six steps.

1. Identify the legal entity

Open the customer's:

• Terms of Service;
• account agreement;
• regulatory disclosure.

Find the exact legal company providing the service.

Do not rely only on the brand name.

2. Determine whether the service is inside VARA's perimeter

Ask whether the entity operates in Dubai outside the DIFC.

If it is inside the DIFC, the DFSA framework becomes relevant instead.

3. Search VARA's Public Register

Find the exact legal entity.

Check whether it appears under:

• Licensed VASPs; or
• In-Principle Approval.

IPA should never be treated as a full operating licence.

4. Check authorised activities

Match the permission with the service the user intends to use.

For example:

Product	Permission to check
Spot exchange	Exchange Services
Perpetual futures / ETDs	Exchange Services with explicit ETD authorisation
Custody	Custody Services
Broker execution	Broker-Dealer Services
Lending	Lending and Borrowing Services
Asset management	Management and Investment Services
Relevant issuance	Applicable VA Issuance permission

Do not assume one activity covers another.

5. Read the applicable rulebook and customer terms

Check:

• custody arrangements;
• asset use;
• fees;
• withdrawal terms;
• leverage;
• liquidation;
• complaints;
• governing law.

The licence tells you what the company is authorised to do.

The customer agreement tells you how the relationship is actually structured.

6. Record the date of verification

VARA's framework and Public Register change over time.

Keep:

• entity name;
• licence reference;
• authorised activities;
• status;
• check date;
• link to the official register;
• version of the customer agreement.

That makes future updates much easier to audit.

A useful verification chain

For Dubai virtual-asset businesses, the strongest research structure is:

Brand → Customer Entity → Regulatory Perimeter → VARA Register → Licence Status → Authorised Activity → Product → Customer Agreement

The weak version is:

Brand → Dubai office → “VARA regulated”

The second model is easier to publish.

It is also much more likely to mislead users.

Dubai and DIFC should be kept separate in regulatory databases

This distinction is especially important for a regulatory database covering UAE crypto businesses.

A record should not simply say:

Jurisdiction: Dubai

It should distinguish at least:

• Dubai / VARA perimeter;
• DIFC / DFSA perimeter;
• any relevant federal or CBUAE framework.

The difference affects:

• regulator;
• licence type;
• applicable rulebooks;
• product permissions.

In January 2026, the DFSA's updated Crypto Token regime came into force inside DIFC, including a revised approach where authorised firms themselves assess whether Crypto Tokens meet the DFSA's suitability criteria.

That framework is separate from VARA's Public Register and licensing model.

Dubai company registration should never substitute for a regulator check

This is one of the most useful practical rules for exchange reviews.

If an exchange says:

“Registered in Dubai”

do not immediately write:

“Regulated by VARA.”

Instead check:

• the entity name;
• its corporate registration;
• VARA's Public Register;
• licence status;
• licensed activities.

A company can legally exist in Dubai while lacking permission to perform regulated virtual-asset activities.

VARA also publishes information on entities suspected or found to be conducting virtual-asset or marketing activity without the appropriate licensing.

Corporate existence is not regulatory authorisation.

Current rules matter more than historical licence announcements

Crypto exchanges frequently announce milestones such as:

• initial approval;
• provisional approval;
• MVP approval;
• IPA;
• licence extension;
• new activity permission.

Those announcements are useful historical evidence.

They should not override the current Public Register.

A company can:

• receive additional permissions;
• change legal entity;
• move to another licence stage;
• surrender a permission;
• face restrictions.

For current regulatory status, use the live regulator record first.

Then use old announcements to explain the history.

What the 2026 framework means for exchanges

For exchanges, VARA's framework increasingly separates activities that global crypto platforms often bundle together.

A single app might offer:

• spot trading;
• derivatives;
• custody;
• lending;
• staking;
• token issuance.

The interface can make those services look like one product.

The regulator does not necessarily treat them that way.

The exchange may need:

• different activity permissions;
• separate compliance requirements;
• an independent custody entity;
• explicit derivatives approval;
• product-specific disclosures.

That makes legal-entity architecture more important as the product range expands.

What the framework means for users

The main benefit of the VARA framework is not that crypto becomes safe.

It is that provider claims become easier to verify.

A user can ask:

• Is the company in the register？
• Is it fully licensed？
• What exact activities are authorised？
• Does its licence include derivatives？
• Which company holds my assets？
• Is custody performed by a separate licensed entity？
• Which customer agreement applies？

Those questions provide much more useful information than a generic “Dubai regulated” label.

The framework still does not remove:

• market losses;
• leverage risk;
• hacks;
• user mistakes;
• liquidity problems;
• token failures;
• business failure.

Conclusion

Dubai's virtual-asset framework has evolved well beyond Law No. 4 of 2022.

The law created VARA.

The Regulations and rulebooks determine how licensed firms operate.

The Public Register identifies the legal entities and activities currently authorised.

And the 2026 derivatives updates show that product-specific regulation continues to develop.

The most important boundaries are now clear.

VARA does not regulate the DIFC.

In-Principle Approval is not a full operating licence.

A VASP licence is activity-specific.

Exchange Services do not automatically include derivatives unless ETD Services are explicitly authorised.

Custody generally requires an independent legal entity.

AED-referenced stablecoin issuance sits within the CBUAE's regulatory perimeter rather than VARA's FRVA approval route.

Marketing rules can apply even beyond fully licensed VASPs.

For users and researchers, the right method is therefore:

Check the entity.

Check the regulator.

Check the licence stage.

Check the authorised activity.

Check the product.

Check the current rulebook.

That is much more reliable than treating “VARA regulated” as a universal badge.

Frequently asked questions

What is VARA？

VARA is Dubai's Virtual Assets Regulatory Authority, established under Law No. 4 of 2022.

It regulates virtual assets and virtual-asset activities across the Emirate of Dubai, including relevant free zones and special development zones, but excluding the DIFC.

Does VARA regulate the DIFC？

No.

The Dubai International Financial Centre is outside VARA's territorial perimeter.

Financial services involving Crypto Tokens in or from DIFC fall under the DIFC regulatory framework administered by the Dubai Financial Services Authority.

Is In-Principle Approval the same as a VARA licence？

No.

VARA explicitly states that an IPA holder cannot begin operations, conduct VA Activities or service clients until it receives the full VASP licence.

Can a company with IPA advertise itself as VARA licensed？

IPA can accurately be described as a conditional stage in the licensing process.

It should not be presented as a full VASP licence permitting customer operations.

Does one VARA licence cover every crypto service？

No.

VARA licences are activity-specific.

Relevant categories include Exchange, Broker-Dealer, Custody, Lending and Borrowing, Management and Investment, Advisory, Transfer and Settlement and relevant issuance activities.

Does an Exchange Services licence allow crypto derivatives？

Not automatically.

Under VARA's 2026 Exchange Traded Derivative Services rules, a VASP must be licensed for Exchange Services and explicitly authorised by VARA to provide ETD Services, with that authorisation stated in its licence.

What changed for derivatives in 2026？

VARA updated its Exchange Services Rulebook on March 31, 2026 with dedicated rules for Exchange Traded Derivative Services.

These address areas including suitability, disclosures, segregation, margin, leverage and insurance funds.

Does VARA require a derivatives insurance fund？

VASPs providing ETD Services must generally establish and maintain an Insurance Fund unless otherwise approved by VARA.

The fund is intended to address certain negative equity balances under extreme market conditions. It is not a general guarantee against trading losses.

Does VARA require custody to be in a separate company？

VARA's Custody Services Rulebook states that a VASP providing Custody Services generally must be an independent legal entity separate from group members providing other VA Activities or linked services, subject to the specified Transfer and Settlement Services exception.

Is a Dubai free-zone registration the same as a VARA licence？

No.

Company incorporation and virtual-asset regulatory authorisation are separate.

The entity should be checked in VARA's Public Register along with its licence status and authorised activities.

Does VARA regulate stablecoins？

VARA's issuance framework includes rules for Fiat-Referenced Virtual Assets and Asset-Referenced Virtual Assets.

However, stablecoins purporting to maintain a stable value against AED remain within the sole and exclusive regulatory purview of the Central Bank of the UAE rather than VARA's FRVA approval route.

Does a VARA licence mean a token is safe？

No.

VARA authorisation regulates the service provider and relevant activity. It does not guarantee the value, liquidity or future performance of a virtual asset.

Do VARA marketing rules apply only to licensed exchanges？

No.

VARA's Marketing Regulations apply more broadly to relevant marketing in or targeting the UAE under the conditions specified in the rules, including conduct by domestic and foreign entities.

Marketing of regulated VA Activities must comply with the applicable licensing and approval requirements.

Are crypto memes and social posts covered by marketing rules？

They can be.

VARA's guidance says the overall impression of marketing must be fair, clear and not misleading and specifically notes that formats such as memes and short videos can constitute marketing.

Does VARA permit privacy coins？

VARA prohibits issuance and regulated VA Activities involving assets that fall within its definition of Anonymity-Enhanced Cryptocurrencies in the Emirate.

The legal classification depends on the regulatory definition and facts, not merely the project's branding.

Where can I verify a VARA licence？

Use VARA's official Public Register:

https://www.vara.ae/en/licenses-and-register/public-register/

Search for the exact legal entity and check:

• licence type;
• reference number;
• status;
• authorised activities.

Official sources

• Dubai Law No. 4 of 2022 — Regulating Virtual Assets in the Emirate of Dubai
• VARA — Virtual Assets and Related Activities Regulations
• VARA — Public Register
• VARA — VA Activity and Other Rulebooks
• VARA — Custody Services Rulebook
• VARA — Exchange Traded Derivative Services Rules
• VARA — Virtual Asset Issuance Rulebook
• VARA — Fiat-Referenced Virtual Asset Issuance Rules
• VARA — Marketing Regulations
• VARA — Guidance on Marketing Regulations
• VARA — Consumer and Marketplace Alert on Memecoins
• DFSA — Crypto Token Regulation in DIFC

Disclaimer: This article is for regulatory research and informational purposes only. It is not legal or investment advice. VARA licences, activity permissions, rulebooks and regulatory status can change, so current information should be verified against VARA's Public Register, the applicable rulebook and the customer's current agreement before use.