Animoca Brands has secured a Virtual Asset Service Provider (VASP) licence from Dubai’s Virtual Assets Regulatory Authority (VARA). The licence authorizes the Web3 investment giant to offer broker-dealer and asset management services to institutional investors in the emirate. This development follows recent regulatory updates in Dubai’s financial free zone, which have banned privacy tokens and tightened rules for stablecoins, aligning with global anti-money laundering standards.
Animoca Brands has obtained a Virtual Asset Service Provider licence from Dubai’s Virtual Assets Regulatory Authority. The authorization allows the firm to provide broker-dealer and asset management services to institutional and qualified investors from the emirate, excluding the Dubai International Financial Centre.
The licence strengthens Animoca Brands’ foothold in the Middle East, as “Animoca has seen growth in its institutional products such as RWAs, so an emphasis on institutional clients out of Dubai is important and strategic to us,” co-founder Yat Siu stated. The company manages a portfolio of over 600 companies and digital assets.
This approval comes weeks after the separate regulator governing the DIFC, the DFSA, prohibited licensed exchanges from facilitating privacy-focused tokens like Monero and Zcash. The DFSA also scrapped its approved token whitelist and banned the use of privacy-enhancing tools such as mixers.
Furthermore, the DFSA tightened its definition of “fiat crypto tokens,” reserving the category for tokens pegged to fiat and backed by high-quality, liquid assets. This standard would disqualify a major portion of current stablecoins, aiming to ensure they can meet redemption demands during market stress.
“Stricter token and AML standards actually make Dubai more attractive for serious global players, because they de-risk the jurisdiction and give institutions the regulatory clarity they need to scale here,” said Nitesh Mishra of ChaiDEX Capital. He added that the move signals ‘clean capital only,’ which appeals to large funds and banks.
Dubai’s rule changes align with a wider, AML-driven crackdown on privacy tokens. Last month, India’s Financial Intelligence Unit updated its guidelines to require regulated service providers to block privacy tokens and coin mixers.
