How Dubai New Crypto Rulebook is Changing the Game

Dubai has made a major leap towards creating the future of digital finance by issuing an updated crypto regulation. The Virtual Assets Regulatory Authority (VARA) has launched Rulebooks Version 2.0—a clear and well-organized regulatory regime that is revolutionizing the way crypto firms function, not just in the UAE but globally.

In contrast to other regions with a mixed or unclear approach, Dubai has established its model based on discipline, compliance, and transparency. The most recent developments emphasize the manner in which virtual assets are marketed, traded, and operated under a framework. This is a transition toward a more secure, safer, and well-governed digital asset environment—positioning Dubai ahead of the world as a crypto regulation hub.

A New Era of Crypto Regulation

Since its launch in February 2022, the Virtual Assets Regulatory Authority (VARA) has taken a leading role in shaping the future of digital assets. It is the first independent authority in the world that is only focused on overseeing virtual assets. While most nations are still adopting a vague crypto regulation strategy, Dubai has opted for a systematic and disciplined approach.

On 19 May 2025, VARA issued Rulebooks Version 2.0—a revised regulatory regime that beefs up rules on marketing, margin trading, token issuance and overall compliance for Virtual Asset Service Providers (VASPs). The updates are intended to stop misleading advertising, enhance investor protection, and provide more transparency throughout the crypto space.

With clear licensing regulation and risk management measures, Dubai is establishing a strong precedent for other governments regarding the responsible regulation of virtual assets. This new and balanced strategy promotes prudent innovation while developing a secure ecosystem where individuals, institutions, and enterprises can take part in the emerging blockchain economy safely.

Key Highlights of the Marketing Rules:

The Rulebook 2.0 from VARA presents a number of ideas aimed at promoting innovation and building trust and responsibility.

Below are some key provisions –

• Authorised Promotions Only – Only companies licensed by VARA can market or promote crypto products or services. Even if the content is created outside the UAE, it still falls under VARA’s scope if it targets UAE residents.
  
• Clear Jurisdiction Criteria – Marketing content falls under VARA’s jurisdiction if it –
  
  • Is in Arabic,
    
  • Uses Dubai-based influencers,
    
  • Lists prices in UAE Dirhams (AED).
    
• Mandatory Risk Warnings – All marketing material needs to include clear, bold risk disclosures that can’t be written in fine print.
  
• Banned Terms – It is entirely forbidden to use false terms like “guaranteed returns,” “limited time offer,” or “exclusive drop.”
  
• Token Restrictions – Privacy-focused cryptocurrencies that obscure transaction details or user identities are banned from promotion.
  
• Record Keeping – All marketing campaigns, influencer agreements and supporting materials shall be retained for a minimum of eight years and be available for audit.

Impact on Influencers and Content Creators

The new rulebook also places significant responsibility on influencers and public figures promoting crypto.

They must –

• Clearly disclose paid partnerships.
  
• Verify that the company they’re promoting is licensed by VARA.
  
• Avoid discussing unlicensed or unstable tokens.

Events like webinars, online classes, and panel discussions streamed to UAE audiences must include the license number of the organizer and cannot push users into instant sign-ups.

These actions show Dubai’s intention to develop a secure and trustworthy cryptocurrency ecosystem. Rather than limiting innovation, rules are meant to support long-term industry growth by encouraging only legitimate and compliant businesses to operate in the market.

Licensing, Compliance, and Risk Management

Dubai has dramatically increased the level of licensing and operational compliance for crypto firms in the Emirate. All VASPs providing services like issuance, custody, exchange operations, or broker-dealer services need a VARA license to conduct business in mainland Dubai (outside the DIFC).

The process of obtaining a license entails –

• A detailed business plan and financial model.
• Proof of funding sources.
• Complete KYC (Know Your Customer) and AML (Anti-Money Laundering) policies.
• Compliance will be verified by VARA or other appropriate authorities.
• Getting preliminary permission and company registration.

In line with global best practices, the UAE has also implemented strict anti-money laundering and counter-terrorism financing (AML/CFT) measures, closely aligned with the guidelines set by the Financial Action Task Force (FATF).

All licensed VASPs are required to –

• Conduct thorough customer due diligence
• Monitor and report any suspicious transactions
• Maintain complete records for regulatory review

Furthermore, Dubai has adopted the FATF Travel Rule, which mandates that VASPs collect and share identifying information for both the sender and the recipient for transactions exceeding AED 3,500. This rule enhances transparency and helps prevent the misuse of virtual assets for illegal activities.

Opportunities and Responsibilities for Crypto Businesses

For crypto business owners and companies wanting to enter the UAE market, the new rulebook brings both chances and responsibilities. The framework simplifies setting up businesses in free zones like the Dubai Multi Commodities Centre (DMCC) and the Dubai International Financial Centre (DIFC). These free zones provide major benefits, including tax breaks, 100% foreign ownership, and no import or export fees.

However, companies must also meet specific requirements to operate legally and maintain compliance. These include –

• Appointing qualified compliance officers
  
• Maintaining strong internal control systems
  
• Conducting annual audits
  
• Undergoing regular assessments by VARA

The Road Ahead

Dubai’s new crypto rulebook marks a major milestone in the evolution of virtual asset regulation—not just in the region, but globally. By combining clear rules, strong oversight, and business-friendly policies, the Emirate is creating a secure and forward-thinking environment for the growth of the digital asset industry.

As more crypto businesses and entrepreneurs move to the UAE, Dubai is becoming a leading hub for the global crypto market. With strong support from VARA (Virtual Assets Regulatory Authority), the city offers clear rules, a safe environment, and great opportunities for long-term growth.

Also Read: Why Digital Nomads Are Choosing UAE as Their New Home in 2025