Revolut Secures VARA Approval for Crypto Services in UAE, Boosting Regional Fintech Competition

Revolut has secured in‑principle approval from Dubai's Virtual Assets Regulatory Authority (VARA) to offer crypto services in the United Arab Emirates, reshaping the regional fintech landscape.

VARA Green Light: A New Crypto Ecosystem in the Emirates

VARA granted Revolut the authority to act as a broker‑dealer, manager‑investor, and exchange provider. This move aligns with the UAE's strategy to attract more international players to its digital asset market.

Revolut's Strategic Expansion Play

The London‑headquartered fintech, after obtaining a UK banking licence in March 2024, is pursuing a US banking charter and a licence in Peru.

■Revolut received its UK banking licence in March 2024.

■VARA currently lists 51 licensed firms, with 22 in‑principle approvals.

■Through the Revolut X platform, UAE users will be able to buy, sell and hold digital assets.

■The USDT (Tether) stablecoin will be delisted in the EEA and Switzerland starting August 2024.

Regulatory Landscape and Market Dynamics

While the UAE Central Bank approved payment activities, VARA continues to supervise crypto services under a stringent framework. The EU's MiCA regulation forces firms to secure licences by 1 July 2024, prompting Revolut's recent risk reassessment.

Regional Competition and Forward Outlook

VARA recently gave in‑principle approval to Payward, the parent of Kraken, signalling heightened competition. Both local and global players are expected to accelerate their entry into the UAE market.

Cem Talu – Head Strategist, Digital Assets

Revolut's VARA approval is a pivotal milestone that will elevate the UAE to a crypto hub for the Middle East. The liquidity provision via Revolut X should deepen token markets and dampen price volatility. However, the delisting of USDT highlights ongoing regulatory risk, urging institutional investors to adopt a cautious stance.