UK-based financial technology company Revolut has received in-principle approval from Dubai’s Virtual Assets Regulatory Authority (VARA) to offer cryptocurrency services, marking a significant step towards launching its full suite of digital asset products in the UAE. The approval moves the global neobank into the final stage of its licensing process.
Quick Facts
- Received “in-principle approval” from Dubai’s VARA.
- Next step is securing a full VASP licence.
- Joins global platforms like Binance and Crypto.com.
The Path to a Full Licence
The preliminary approval from VARA signals that Revolut’s business model and internal controls have met the regulator’s initial standards. The company will now focus on completing the remaining requirements to convert this into a full Virtual Asset Service Provider (VASP) licence, which would permit it to operate a regulated crypto trading platform in Dubai.
An industry source familiar with the process suggested that the final conditions could be met relatively quickly. “Given Revolut’s size and sophistication, you’d expect it to meet the remaining conditions in a matter of weeks rather than months,” the source told AGBI. “My understanding is the in-principle approval is the regulator saying: ‘Yes, subject to you finishing the homework.’”
A spokesperson for Revolut confirmed the move. “Receiving in-principle approval is an important milestone. We are now working closely with Vara to complete the remaining regulatory requirements for our full VASP licence.”
They added, “We look forward to bringing our regulated crypto offering to eligible customers in the UAE once all necessary approvals have been received.”
Dubai’s Growing Crypto Ecosystem
This development brings Revolut closer to offering crypto trading alongside the payments, cards, and money transfer services it is already preparing for its UAE launch. The VARA authorisation is a mandatory and separate requirement for any firm offering virtual asset services in the emirate, even those licensed by the UAE Central Bank.
Joseph Khair, head of Revolut digital assets free zone enterprises in the UAE, commented on the regulatory environment. “The UAE continues to demonstrate global leadership in establishing a robust and transparent framework for virtual assets and we are proud to align with that vision.”
Dubai has been actively building its reputation as a global hub for the digital asset industry, competing with centres like Singapore and Hong Kong. Earlier this month, VARA announced it has fully licensed 50 companies, with another 20 expected to become operational soon.
Upping the Ante on Compliance
VARA’s approval process for Revolut included detailed checks of its know-your-customer (KYC), anti-money laundering (AML), and sanctions controls. This reflects a broader trend of tougher supervision in the UAE, particularly after its successful removal from the Financial Action Task Force’s (FATF) grey list in February 2024.
Regulators now expect virtual asset firms to implement more advanced, data-driven compliance measures to combat financial crime.
“The message from the regulator is that growth in virtual assets has to go hand in hand with tougher anti-money laundering standards, especially after the UAE worked so hard to get off the FATF grey list,” the industry source noted.
About Revolut
Revolut is a global financial technology company founded in 2015. It offers a wide range of financial services through its app, including banking, currency exchange, commission-free stock trading, and cryptocurrency services to millions of customers worldwide.
Source: AGBI
