The Dubai Virtual Assets Regulatory Authority (VARA) issued a market alert to correct social media claims that the UAE has banned Bitcoin and restricted self-custodial wallets. VARA stated that virtual assets, including Bitcoin, remain permissible in the UAE under Cabinet Decision No. 111 of 2022 and the rules and regulations of the Securities and Commodities Authority (SCA) and VARA. VARA also clarified that the new Central Bank of the UAE law applies to Licensed Financial Institutions, insurance businesses and Licensed Financial Activities as defined in that law. Virtual Assets Activities and Virtual Assets Service Providers (VASPs) remain regulated by SCA or VARA depending on territory, except where activities fall within payment services, including using virtual assets as a means of payment or legal tender, or using stored-value services to provide retail payments or digital money services, as described in Article 61 of the Central Bank law. Market participants were advised to rely on official publications rather than social media commentary for regulatory information.
Dubai Virtual Assets Regulatory Authority 2025-11-27
Dubai Virtual Assets Regulatory Authority clarifies Bitcoin remains permitted in the UAE and limits Central Bank law scope to licensed financial institutions
The Dubai Virtual Assets Regulatory Authority (VARA) refuted social media claims that the UAE banned Bitcoin and restricted self-custodial wallets, affirming virtual assets remain permissible. VARA clarified the new Central Bank law pertains to Licensed Financial Institutions, while Virtual Assets Activities are regulated by the Securities and Commodities Authority or VARA, except for certain payment services. Market participants should rely on official publications for accurate regulatory information.