Animoca Brands Secures VASP Licence in Dubai as Emirate Tightens Crypto Rules

Animoca Brands has obtained a Virtual Asset Service Provider (VASP) licence from Dubai’s Virtual Assets Regulatory Authority (VARA), enabling the Web3 investment firm to offer broker-dealer and asset management services to institutional and qualified investors in and from the emirate. The approval allows the company to operate across Dubai, excluding the separate Dubai International Financial Centre (DIFC), and reinforces the region’s strategy of building regulated digital asset infrastructure.

Yat Siu, co-founder and executive chairman of Animoca Brands, described the licence as strategically important, particularly as the company expands its institutional product offerings, including real-world assets (RWAs). He praised VARA and the broader UAE regulatory environment as forward-looking and supportive of crypto innovation, positioning Dubai as a key hub for serious industry players.

Animoca Brands, which oversees a portfolio of more than 600 companies and digital assets and operates platforms such as The Sandbox and Moca Network, said the licence strengthens its footprint in the Middle East at a time when regulatory clarity is becoming a decisive competitive advantage.

Dubai’s Regulatory Shift Toward “Clean Capital”

The approval comes shortly after the Dubai Financial Services Authority (DFSA), which regulates the DIFC free zone, introduced stricter digital asset rules. The DFSA prohibited licensed exchanges and financial institutions within the DIFC from facilitating privacy-focused tokens such as Monero and Zcash, citing concerns related to anti-money laundering (AML) and sanctions compliance.

In addition, the regulator eliminated its approved token whitelist, shifting responsibility for asset suitability assessments onto licensed firms. The updated framework also bans the use of privacy-enhancing tools such as mixers and tumblers that obscure transaction details. Furthermore, the DFSA narrowed the definition of “fiat crypto tokens,” limiting it to tokens fully backed by high-quality, liquid assets capable of meeting redemption demands during periods of market stress. This move could disqualify a significant portion of existing stablecoins from qualifying under the new standard.

Industry observers argue that tighter rules may ultimately enhance Dubai’s appeal. Nitesh Mishra, co-founder and CTO of ChaiDEX Capital, said stricter AML and token standards reduce jurisdictional risk and provide the regulatory certainty institutions require. He described the measures as a signal that Dubai is prioritizing compliant capital flows over speculative activity.

Global Trend Toward Stricter AML Enforcement

Dubai’s evolving framework aligns with broader international efforts to tighten oversight of digital assets. Regulators worldwide are increasingly focusing on AML compliance, sanctions enforcement, and restrictions on privacy-enhancing technologies. Recent guidance in India, for example, requires regulated virtual asset service providers to block privacy tokens and transaction-mixing tools, citing elevated money laundering and terrorist financing risks.

As jurisdictions seek to balance innovation with compliance, Dubai appears to be positioning itself as a regulated yet crypto-friendly environment. By combining licensing pathways for firms like Animoca Brands with firm AML standards, the emirate is signaling that institutional-scale digital asset activity will be welcomed—provided it meets increasingly rigorous compliance expectations.