The UAE’s Virtual Assets Regulatory Authority (VARA) has issued 14 new virtual asset service provider (VASP) licences in Q1 2026, bringing the total number of licensed crypto and virtual asset businesses operating in Dubai to 82 — the highest concentration of regulated crypto firms of any single jurisdiction globally, surpassing Singapore’s 58 licensed entities and exceeding the UK’s Financial Conduct Authority’s VASP register by 24 firms.
Who Received Licences and What Services Are Covered
The Q1 2026 batch of VARA licences includes eight crypto exchange operators, three virtual asset custodians, two blockchain-based payment platform providers, and one tokenised securities issuance platform. New licensees include subsidiaries of three global tier-one banks, confirming that institutional financial services companies are now entering the regulated UAE virtual asset space alongside crypto-native firms.
VARA’s licensing framework covers five service categories under its comprehensive Virtual Assets and Related Activities Regulations 2023: advisory services, broker-dealer services, custody services, exchange services, and lending and borrowing services. Each category requires a distinct authorisation, meaning many VASP businesses hold multiple authorisations — giving Dubai’s ecosystem a functional depth that simpler “crypto hub” jurisdictions often lack.
Institutional Momentum: Banks Enter the Space
The arrival of bank subsidiaries in VARA’s register marks a new phase of UAE crypto market maturity. First Abu Dhabi Bank (FAB) received VARA authorisation for its digital assets custody unit in Q1 2026, becoming the first UAE national bank to hold a regulated virtual asset custody licence. Emirates NBD’s fintech arm applied for an exchange licence in January 2026 with a decision expected by Q3 2026.
For institutional investors and corporate treasuries, bank-custody solutions for digital assets address the fiduciary and counterparty concerns that have historically prevented traditional finance clients from holding crypto assets directly. FAB’s VARA-licensed custody offering covers Bitcoin, Ether, and a suite of UAE Central Bank-approved regulated digital tokens — providing the safekeeping, insurance, and reporting infrastructure required by institutional investment mandates.
The B2B Case for Dubai’s Virtual Asset Ecosystem
For international virtual asset businesses considering their GCC presence strategy, VARA’s maturing framework offers regulatory clarity that most global jurisdictions still cannot match. The application-to-licence timeline has reduced from 18 months (2022-23 average) to approximately 6 months for well-prepared applicants, driven by VARA’s expanded 180-person review team and its improved guidance documentation. Companies obtaining VARA licences also benefit from the Dubai Department of Economy and Tourism’s fast-track business establishment process and a zero-corporate-tax environment for profits generated from licensed virtual asset activities under current UAE regulations.
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