Animoca Brands Wins VARA‑Issued VASP Licence, Opening Regulated Crypto Services to Institutional Clients in Dubai
Hong Kong‑based Web3 investor and platform developer Animoca Brands announced on Monday that it has been granted a Virtual Asset Service Provider (VASP) licence by Dubai’s Virtual Assets Regulatory Authority (VARA). The approval paves the way for the company to offer broker‑dealer and investment‑management services for virtual assets to qualified and institutional investors from within the emirate, with the exception of activities inside the Dubai International Financial Centre (DIFC).
licence details and scope
- Issuing authority: VARA, the body created in March 2022 to supervise the issuance, use and exchange of digital assets across Dubai’s mainland and free‑zone jurisdictions.
- Date of issuance: 5 February 2024, as listed on VARA’s public register.
- Permitted activities: Provision of broker‑dealer services and investment‑management functions related to virtual assets. These services may be conducted “in and from” Dubai, but are excluded from the DIFC’s separate regulatory regime.
- Target clientele: Institutional investors and qualified individuals globally, rather than retail participants.
Omar El‑Assar, Animoca Brands’ Managing Director for the Middle East and head of Global Strategic Partnerships, said the licence “enhances our ability to engage with Web3 foundations as well as global institutional and qualified investors within a well‑regulated framework.”
Animoca Brands’ Web3 footprint
Animoca Brands has built a diversified presence in the blockchain ecosystem through development of platforms such as The Sandbox, Open Campus, and Moca Network, and by maintaining an investment portfolio that spans more than 600 blockchain‑related projects. In January, the company expanded its digital‑collectibles offering with the acquisition of gaming and NFT firm Somo, adding a new line of tradable, playable assets to its suite of products.
Industry context: Dubai’s push for regulated crypto activity
Animoca’s licence joins a growing roster of crypto‑focused firms securing regulatory clearance in Dubai. In October 2025, digital‑asset infrastructure provider BitGo obtained a broker‑dealer licence from VARA for its Middle East and North Africa unit, enabling regulated trading services for institutional clients. VARA’s enforcement actions over the past year—penalising 19 entities for unlicensed virtual‑asset activities and breaches of marketing rules—underscore the authority’s commitment to a tightly supervised market.
The regulatory momentum aligns with broader UAE initiatives to harmonise crypto frameworks across the federation, as highlighted in recent partnerships between Dubai’s financial regulators and other government bodies.
Analysis
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Strategic market entry – By securing a VARA licence, Animoca Brands gains formal access to a region that has positioned itself as a hub for digital‑asset services. The licence not only legitimises the company’s operations in the Gulf but also offers a gateway to institutional capital that is increasingly seeking compliant exposure to Web3 assets.
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Regulatory credibility – VARA’s rigorous licensing process and its recent enforcement record signal that only firms able to meet high compliance standards will be allowed to operate at scale. Animoca’s approval demonstrates the company’s readiness to adhere to these standards, which may be a differentiator when courting risk‑averse institutional investors.
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Competitive positioning – While other players such as BitGo have already established regulated trading desks, Animoca’s focus on broker‑dealer and investment‑management services—coupled with its extensive portfolio of Web3 platforms—places it in a unique niche that blends asset management with ecosystem development.
- Potential constraints – The exclusion of the DIFC from the licence’s scope means that any activities planned within that financial zone will require separate regulatory clearance. Additionally, the firm must continuously monitor VARA’s evolving rules, especially concerning marketing and licensing, to avoid the penalties that have been levied against other market participants.
Key takeaways
- Licence secured: Animoca Brands now holds a VARA‑issued VASP licence, allowing regulated broker‑dealer and investment‑management services for virtual assets in Dubai (outside DIFC).
- Institutional focus: The licence is tailored for qualified and institutional investors, expanding Animoca’s addressable market beyond retail users.
- Regulatory environment: VARA is actively shaping a compliant crypto ecosystem in Dubai, imposing penalties on unlicensed entities and encouraging firms to obtain formal approvals.
- Strategic advantage: Access to Dubai’s regulated market enhances Animoca’s ability to attract institutional capital and to integrate its Web3 platforms with a broader financial infrastructure.
- Industry trend: More crypto firms are seeking VARA licences, signalling Dubai’s ambition to become a leading global hub for regulated digital‑asset services.
Animoca Brands’ entry into the regulated Dubai market underscores the growing importance of compliance for blockchain companies aiming to serve institutional capital and may signal further expansion of Web3 services across the Middle East.
Source: https://cointelegraph.com/news/animoca-brands-dubai-vara-vasp-license-middle-east?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
