Opinion by: Irina Havor, Crypto lawyer.
The founder who consider the regulatory structure as a central part of its Go-to-Market strategy is those who thrive in the UAE. Unfortunately, many founders see licensing as a later.
UAE is not a place where you can cut the corners. However, it is a place where thoughtful, well -prepared founders are rewarded with speed, clarity and access to highly supportive ecosystems.
Unlike the beliefs of some founders, there are no regulatory problems – there is a lack of confusion, poor planning and readiness.
The crypto licensing landscape in the United Arab Emirates could be difficult to understand, so that it was experienced that venture capitalists, serial entrepreneurs and global law firms often misunderstand governance.
Let us bring some clarity to the situation.
One country, two legal systems
The UAE is a federal country that includes seven Emirates, working under two separate legal systems.
The mainland legal system, known as “onshore” rule, covers the whole UAE Areas and more than 45 economic free areas are included. These jurisdiction falls under UAE’s civil law and are ruled by the UAE court system.
Financial -free zones, Abu Dhabi Global Market (ADGM) and Dubai International Financial Center (DIFC), work independently under the English General Law. They also maintain their own regulatory bodies and court systems, apart from the judicial system of the mainland.
It is important to understand this bisexual because the regulatory authority controlling your crypto activities depends primarily on the legal framework under which you choose to operate.
One country, five crypto regulators
Five separate officers regulate crypto and related activities, each with their jurisdiction, mandate and licensing structure.
Towards mainland, three relevant Regulator Are:
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UAE Central Bank (CBUAE): AED-Senominded StableCoins, Crypto controls payment and remittance-related activities, and approves foreign stabecrims.
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Securities and Commodities Authority (SCA): Crypto regulates exchanges, broker-dealers and token prasad that resembles securities or commodity contracts.
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Dubai Virtual Assets Regulatory Authority (VARA): Except those in DIFC, controls most virtual asset service providers (VASPS), operating in Dubai.
Connected: Dubai Regulator Greenlights Ripple’s RLUSD Stabecoin
In financial free areas, there are two separate regulators:
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Financial Services Regulatory Authority (FSRA): Financial Affairs for ADGM, which developed one of the most advanced regulatory structure for digital assets in 2018.
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Dubai Financial Services Authority (DFSA): Regulatory for DIFC, with a vigilant but developed approach to Crypto assets.
This unique structure can be both a blessing and challenge. Choosing an incorrect regulator or failing to understand the scope of each authority may waste time, may have missed opportunities or, in some cases, can complete licensing failure.
Choose the right regulator
The correct jurisdiction depends entirely on your specific business model. Here are some common landscapes:
Launch a Crypto Exchange
Plan to become the next binense? Be prepared to navigate a rigid licensing path. Vara, SCA or ADGM are potential homes for you. Each has its own requirements, and no one is for the unconscious heart.
Release a stablecoin
If you are thinking of rival teders in AED, welcome to the growing table. You will work with the UAE central bank.
Build a token RWA platform
Want to convert a warehouse of luxury real estate, fine arts or whiskey into blockchain-based assets? New governance of the groom for asset-supported tokens One is definitely being read. And no, it will not be cut by slapping “utility tokens” on a white paper.
Start a crypto fund
Got capital and a vision to deploy the next Crypto Unicorn? This is the time to become the best friend with ADGM’s FSRA. This is one of the most advanced digital asset framework, but there is no mistake, they expect real compliance chops.
Launch a payment app
Do you want to make big money moves? The central bank must be watching you closely. Do not expect a light-touch approach while handling the customer money.
Trying to do all this
No. Founders often want to create a complete offering at once, which may be a recipe for regulator burnouts. It is much better to start narrow – obtain a license, create traction, then scale.
More best practice
Founders who prefer regulatory structure as a main element of their Go-to-Market strategy are those who succeed in the UAE.
Success demands a completely regulatory evaluation from the beginning, the alignment of a business model with correct jurisdiction and rights and collaboration with legal experts that actually understand the local landscape.
In the UAE, corners are not tolerated by cutting. The founders who plan carefully and are constantly attached to the regulators are rewarded with speed, clarity and access to highly supportive ecosystems.
Opinion by: Irina Havor, Crypto lawyer.
This article is for general information purposes and is not intention and should not be taken as legal or investment advice. The ideas, ideas and opinions expressed here are alone of the author and not necessarily reflected or represented the ideas and ideas of the components.
