What to know:
- Revolut gains preliminary VARA approval to expand regulated crypto services in the UAE.
- Eligible UAE users could buy, sell, and hold crypto through Revolut and Revolut X.
- Revolut must meet final VARA conditions before launching its Dubai crypto services.
Revolut has received in-principle approval from Dubai’s Virtual Assets Regulatory Authority to expand its regulated crypto business in the United Arab Emirates. The decision moves the company closer to offering virtual asset services. Final authorization from VARA is still required.
The preliminary approval applies to trading services, exchanges, investments, and management services associated with digital assets. Revolut said that eligible clients would be able to trade and hold certain cryptocurrencies using its retail app. The services would also be provided through Revolut X.
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How Revolut Advances Its UAE Crypto Plans
The company has not yet received a full operating license from the Dubai regulator. The company has to fulfill more conditions set out by VARA in order to start offering its services. A launch date was not provided in the press release.
This comes after the central bank of the UAE authorized the company for its payments-related activity. This will help the company develop its regulated finance service in the country. With crypto approval, the company has taken one more step towards this goal.
Joseph Khair, CEO of Revolut Digital Assets FZE in the UAE, has said that the UAE has established a very clear framework for virtual assets. He also said that the crypto approval would support a regulated launch of the service under VARA authority.
This decision is made while the firm is trying to adjust its crypto operations in other regions. This week, the firm confirmed its intention to exclude Tether’s USDT from some European accounts. The firm decided to enforce the European Union’s Markets in Crypto-Assets regulations.
Why Revolut Limits USDT in Europe
Customers will be able to sell or transfer their USDT assets till 31st August. It affects notified customers who fall in the European jurisdictions that are eligible. The other markets that fall outside the regulation will support the stablecoin where local rules allow it.
MiCA requires crypto companies and stablecoin issuers to be licensed, have reserves, make disclosures, and be supervised. The Tether has not been authorized by the MiCA. Chief Executive Paolo Ardoino has criticized the framework in terms of reserve requirements.
Revolut is planning to make a move to the US market as well. In June, Reuters reported that the fintech is planning to create a US bank in the coming year. The fintech has applied for a national bank charter from the Office of the Comptroller of the Currency.
The proposed US platform seeks to integrate FDIC-insured banking products with cryptocurrency trading services and multi-currency functionality. This initiative is still under regulatory review. The Dubai approval is preliminary, while the US charter application remains pending.
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