UK-based fintech firm Revolut has scored a notable win as Dubai’s Virtual Assets Regulatory Authority (VARA) granted it in-principle approval to offer virtual asset services in the UAE. This move marks a strategic advancement as the company seeks to furnish regulated cryptocurrency trading in the Middle Eastern market.
What Does Revolut’s VARA Approval Mean?
Once full clearance is secured from VARA, users in the UAE will be able to buy, sell, and keep cryptocurrencies via Revolut’s main application and its specialized Revolut X exchange. Thus, this development lays the groundwork for Revolut to stretch its cryptocurrency services across a key economic territory in the region.
The latest approval follows successive regulatory changes in the UAE, an area aspiring to be a hub for digital asset transactions. Currently, Revolut provides crypto transaction services to more than 16 million individuals distributed across the UK and the European Economic Area.
Joseph Khair, responsible for Revolut Digital Assets FZE in the UAE, remarked that this regulatory milestone provides “a foundation for Revolut to introduce its most trusted virtual asset services within a regulated framework,” reinforcing the VARA’s desire to foster an ecosystem driven by “safety, transparency, and innovation.”
VARA will oversee Revolut’s ongoing operations, demanding compliance in areas like governance, financial stability, technological framework, cybersecurity, risk management, and measures against laundering money.
Is Revolut Expanding Its Influence in the UAE?
Indeed, the green light from VARA is the second significant regulatory nod for Revolut in the UAE over recent months. As of June, the country’s central bank granted the company licenses for stored value facilities and retail payment services. These authorizations permit the storage of diverse assets, such as fiat currencies and reward points, and enable merchant and payment activities within the nation. Revolut’s strategy is geared toward building an inclusive financial platform under local regulations.
- Revolut is expanding into the UAE’s digital assets space.
- Approval allows diversification into Middle Eastern crypto markets.
- VARA ensures ongoing compliance and operational oversight in multiple areas.
Globally, Revolut is also reorienting its crypto offerings in the European region. New European Union regulations under Markets in Crypto-Assets (MiCA) are prompting the company to discontinue deposits in Tether‘s USDT, citing Tether’s lack of EU authorization. Even so, Revolut is also eyeing further expansion, planning a foray into the United States with ambitions for a national bank charter by next year, aiming to deliver a set of integrated financial services there.
