Dubai Issues 36 Crypto Licences and Launches Tokenised Property

Photo: WAM

Dubai’s Virtual Assets Regulatory Authority (VARA) has taken a major step forward by issuing 36 full licences to companies working in the digital asset space. These licences cover firms involved in areas such as cryptocurrency trading, blockchain technology services, and digital financial operations.

VARA’s Chief Executive Officer, Matthew White, confirmed that many more companies are currently in the process of applying for licences. Hundreds of global firms are showing interest in setting up their digital operations in Dubai, confirming the city’s growing reputation as a top destination for financial technology and innovation.

Over 400 Entities Registered in Dubai’s Digital Asset Ecosystem

In addition to the 36 companies with full licences, there are now over 400 entities registered under VARA’s oversight. These businesses are involved in various digital asset activities — from trading to technology support.

This rapid growth in registration and licensing shows that Dubai is becoming a hub for digital innovation, attracting both startups and large international players looking to invest in the virtual economy.

New Real Estate Investment Model: Tokenised Property Ownership

One of the most exciting new initiatives introduced by VARA is a tokenised real estate ownership model, launched in partnership with the Dubai Land Department. This project allows individuals to buy a small portion (fraction) of a property through digital tokens — instead of purchasing the whole property.

This model gives more people access to property ownership in Dubai, especially those who may not have been able to afford full real estate investments. It’s also seen as a smart way to combine real estate with blockchain technology.

First Pilot Attracts 300 Investors – 70% First-Time Owners

The pilot phase of this project listed two properties under the tokenised model. It attracted around 300 investors, and notably, 70% of them were first-time property owners in Dubai.

This early success proves that tokenised real estate can open the market to new investor groups — including local and international individuals — and make investing in property easier, more affordable, and more accessible.

Plans to Enable Trading of Tokenised Real Estate Assets

According to White, tokenised real estate will eventually be available for trading on digital platforms. This will make it easy for investors to buy and sell their shares in properties, just like trading stocks or cryptocurrencies.

This move is expected to improve liquidity in the real estate market, allowing more flexibility for investors while increasing transparency in how property investments are made.

VARA Testing Gold-Backed Tokens and DeFi Products

VARA is also developing pilot projects in two more innovative areas:

1. Gold-backed digital tokens

2. Decentralised Finance (DeFi) products

These projects aim to bring traditional financial assets — like gold — into the digital world using blockchain. If successful, they could offer new ways for people to invest safely and efficiently in alternative assets.

Strong Focus on Compliance and Market Oversight

While encouraging innovation, VARA is also working hard to maintain a safe and well-regulated digital environment. The authority has built a strict supervisory system that includes:

• Clear rulebooks and visual examples for companies

• Requirements for firms to share detailed data on transactions, customer profiles, and funding

• Use of both manual checks and automated tools to ensure legal compliance

If companies break the rules, VARA can take action — including issuing warnings, fines, or even cancelling their licences.

Monitoring and Enforcement: Horizon Scanning System

To detect unlicensed activity, VARA has set up a “horizon scanning” system. This tool scans websites and online platforms to identify businesses operating without licences. If needed, the authority can shut down these operations and seize funds to protect the market and investors.

This approach ensures that digital assets are managed within a legally secure and transparent system.

Cooperation with UAE Government Agencies

VARA does not work alone. It closely coordinates with several other government departments and regulators across the UAE. These include:

• The Securities and Commodities Authority

• The Central Bank of the UAE

• Dubai Police

• The Department of Economy and Tourism

This collaborative approach strengthens Dubai’s ability to manage and monitor its digital financial systems effectively.

Flexible Rules for New Technologies and Business Models

VARA follows a flexible regulation strategy. This means it allows new business models (like tokenised gold or DeFi projects) to operate under experimental frameworks. These pilot systems are closely supervised until they are ready to become part of the full legal system.

This approach helps reduce risk while allowing innovation to flourish in a controlled environment.

Supporting Dubai’s Economic Vision – D33 Agenda

VARA’s work supports the broader goals of Dubai’s D33 Economic Agenda, which aims to double the size of Dubai’s economy in the next 10 years. Launched in 2022, VARA was the world’s first regulatory authority dedicated solely to virtual assets.

By building strong rules and supporting growth, VARA aims to:

• Make Dubai a trusted home for digital finance

• Boost investor confidence

• Attract high-tech companies from around the world

• Create jobs and grow the digital economy

A Balanced Approach to Innovation and Safety

Dubai’s Virtual Assets Regulatory Authority is showing how a city can lead in the digital age — by encouraging innovation, expanding access to new investment opportunities, and ensuring strict oversight to protect everyone involved.

With over 36 licences issued, tokenised real estate pilots completed, and more projects in development, Dubai is proving itself to be a serious global player in virtual assets and blockchain innovation.