UAE Expands Scope for Dubai-Licensed Crypto Firms to Operate Nationwide New single unified market for UAE.
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In a landmark regulatory shift, the United Arab Emirates has authorized crypto firms licensed in Dubai to extend their services across all other emirates, a move expected to bolster the country's position as a global hub for digital assets.
Previously, Virtual Asset Service Providers (VASPs) licensed by Dubai's Virtual Assets Regulatory Authority (VARA) could operate only within the emirate's jurisdiction. The new policy, announced jointly by VARA and the federal Securities and Commodities Authority (SCA), removes those geographical restrictions, enabling Dubai-licensed companies to target a broader client base without the need for multiple licenses.
Industry observers say the change is a significant step toward regulatory harmonization in the UAE's fast-evolving digital economy. "This creates a single, unified market for crypto services across the Emirates," said one regional fintech analyst. "It reduces compliance friction, encourages innovation, and makes the UAE even more attractive for global blockchain players."
The UAE has already made substantial investments in blockchain infrastructure, crypto payment systems, and tokenized asset platforms. Dubai, in particular, has attracted high-profile exchanges and Web3 startups with its business-friendly environment and clear licensing framework. The nationwide expansion is likely to accelerate capital inflows, partnerships, and talent migration into the country's digital asset sector.
The announcement coincides with broader economic cooperation efforts between the UAE and global partners, including a recent pledge with Russia to double bilateral trade volumes. Analysts note that crypto and blockchain could play a role in facilitating cross-border payments and trade settlement mechanisms.
Market participants are watching closely for implementation guidelines, especially concerning AML/KYC compliance, taxation, and cross-emirate dispute resolution. Still, sentiment remains broadly positive.
"This is another example of the UAE leading with regulatory clarity while many jurisdictions remain uncertain," said a crypto exchange executive. "It's a green light for the next phase of industry growth here."
