Fintech firm Revolut is one step closer to bringing its cryptocurrency services to customers in the United Arab Emirates after securing in-principle approval from Dubai’s Virtual Assets Regulatory Authority (VARA).
The approval, which was made public on Wednesday, means that the company can begin providing regulated crypto services in the UAE. This includes the provision of broker-dealer, investment management, and exchange services. However, the company will still require full regulatory approval before they can officially launch their services.
After obtaining the licenses, eligible UAE residents will have access to buy, trade, and store cryptocurrencies via the main Revolut mobile application for consumers as well as Revolut X, the dedicated crypto trading app.
How is the new launch significant?
The move is a significant step that would further enhance Revolut’s presence in the UAE, which has been growing steadily in terms of its businesses. Revolut received the permission to offer payment services from the Central Bank of the UAE earlier this year, which takes it one step closer to providing a variety of financial products in a regulated manner.
Combined, these approvals prove the intention of Revolut to develop its own fully regulated financial ecosystem with both conventional banking services and online assets.
Meanwhile, the approval came amidst the efforts of Dubai to position itself as one of the friendliest locations for crypto companies in the world.
Over the recent few years, Dubai has been striving to attract cryptocurrency firms to its jurisdiction, and at the same time, keep the rapidly developing industry under control. Meanwhile, it has been developing its own regulatory framework for digital currencies.
For 2024, the SCA and VARA harmonized their licensing regime to allow companies licensed in Dubai to offer their services in the entire UAE after satisfying certain other conditions.
Such a flexible regime has attracted crypto companies to Dubai and the whole region.
More crypto firms secure Dubai VARA licenses
CoinMENA and MultiBank are two more companies that have obtained VARA authorisations as they expand their presence in Dubai, underlining the growing significance of the emirate as a regional hub for digital currencies and blockchain innovation.
The approval aligns with Revolut’s broader international strategy to provide regulated crypto products alongside its core banking services. The company has been rolling out digital asset products across several markets as it positions itself as a one-stop platform where customers can manage payments, savings, investments and cryptocurrencies in one app.
The demand for regulated crypto services in the UAE has remained on the rise with authorities seeking to strike a balance between fostering innovation and protecting investors. Clear licensing rules have been a big draw for international fintech and crypto companies looking to expand in the Middle East.
Revolut has not announced a launch date for its crypto services in the UAE, but the in-principle approval is a big step towards that.
Once the final approvals are secured, the firm will join an ever-growing list of licensed firms operating under Dubai’s virtual assets regime and further cement Dubai’s position as one of the world’s leading hubs for regulated crypto businesses.
