UAE
Legislation
Virtual Asset Regulation (Dubai) / FSMR (Abu Dhabi)
Authority
VARA · ADGM/FSRA
Effective
February 7, 2023
Overview
Dual-jurisdiction approach to stablecoin regulation
The big picture: The UAE operates two parallel regulatory regimes — VARA in Dubai and the FSRA/ADGM in Abu Dhabi — each licensing stablecoin issuers independently.
- VARA uses an activity-based model: issuance, exchange, transfer, custody, and lending each require separate authorization
- FSRA applies the Financial Services and Markets Regulations (FSMR) framework within the ADGM free zone
- Issuers must maintain reserves in authorized financial institutions and provide quarterly attestations
- Comprehensive AML/CFT controls aligned with UAE Federal AML Law are required
Why it matters: The UAE's crypto-friendly positioning has attracted major infrastructure — Tether established a regional hub in Dubai, Circle maintains ADGM operations, and dirham-backed stablecoins (AE Coin, 1AED) are in development under VARA supervision.
Coming Soon
Detailed regulatory analysis
In-depth coverage of this jurisdiction's stablecoin framework is being developed for a dedicated satellite site in the Atlas network.
Back to Atlas →