Dubai has claimed a major milestone in the global digital-asset landscape, announcing on 12 October 2025 that it is now the world’s largest licensed market for virtual assets — a status officials say is backed by year-to-date transaction volumes of roughly AED 2.5 trillion and a fast-growing roster of regulated platforms and service providers.
The milestone was highlighted on the third anniversary of the Dubai Virtual Assets Regulatory Authority (VARA), the emirate’s dedicated regulator for cryptocurrency and related services. Dubai’s leadership and VARA pointed to the rapid build-out of a regulated ecosystem — including exchanges, custodians and service providers — as proof that a clear licensing framework can attract institutional flows and market activity.
Officials and local reporting put the number of licensed Virtual Asset Service Providers (VASPs) overseen by VARA at more than 40, while VARA’s public register provides a running list of firms that hold full licences or in-principle approval to operate in the emirate. Regulators say transparency and rulebooks have helped reassure both investors and counterparties.
Dubai’s rise follows a deliberate policy drive: clear regulatory standards, a one-stop licensing regime under VARA, and active promotion of the emirate as a destination for fintech and digital-asset capital. Government messaging this week tied the milestone to broader plans for the city to cement its role among the world’s top financial hubs — part of a wider financial-sector strategy approved by Dubai’s leadership.
Market participants welcomed the development but stressed it comes with fresh obligations. VARA’s suite of rulebooks and recent updates — including transition timetables for licensed firms to meet new compliance and issuance standards — show the regulator is pressing firms toward stronger governance, anti-money-laundering controls and operational resilience. Industry advisers say that regulatory clarity has been essential, but full compliance will remain a heavy lift for some operators.
The milestone also raises competitive dynamics in the Gulf: Abu Dhabi, with its ADGM platform, and other jurisdictions in the region continue to expand their own crypto and digital-asset offerings, pushing Dubai to emphasise speed of licensing, corridor access and institutional-grade infrastructure as differentiators. International firms watching the region say the UAE’s no-tax environment and evolving regulatory certainty are major draws — but differences in rulebooks between emirates mean corporate structuring and licensing decisions remain complex.
Market analysts offered a pragmatic read: transaction volumes and licence counts show demand, but converting that activity into a stable, long-term market will hinge on consistent enforcement, cross-border co-ordination and the maturity of custody, insurance and payments rails. For now, Dubai’s announcement signals a successful experiment in marrying active market-making with a visible licensing regime — and it is likely to accelerate interest from funds, tech firms and payments platforms targeting virtual assets.
