Briefing
VARA was established under Dubai Law No. 4 of 2022, creating the world's first dedicated virtual asset regulator at the emirate level. Binance received its VARA licence in 2023, validating the framework as a workable template for top-tier global exchanges and establishing the precedent Kraken is now following.
Singapore's MAS issued major payment institution licences under the Payment Services Act to a select group of crypto firms, triggering a wave of exchange relocations from less regulated jurisdictions. Dubai is replicating that dynamic: a credible regulatory framework functioning as a gravitational pull for institutional liquidity rather than retail-focused operators.

OKX is simultaneously pursuing a licensed stake in South Korea's Coinone, reflecting the same strategic logic as Kraken's Dubai move: global Tier-1 exchanges are prioritising regulated market entry in jurisdictions with explicit crypto frameworks over organic growth in ambiguous ones.

Bitcoin Depot's Chapter 11 and shutdown of 9,000+ North American ATMs, driven by state-level regulatory fragmentation, illustrates the flip side of the Dubai story: operators without access to coherent licensing frameworks face existential compliance risk, accelerating the reallocation of institutional crypto infrastructure toward permissive jurisdictions.
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Approval covers broker-dealer and investment management; UAE dirham funding and institutional trading services planned at launch

3 days ago