In a
significant move to expand the scope of virtual asset services in the Emirate
of Dubai, the Virtual Asset Regulatory Authority (VARA) has published a revised
Custody Services Rulebook. The updated regulations permit staking from custody
services, provided that the prescribed requirements of the amended rulebook are
met. This change allows Virtual Asset Service Providers (VASPs) to offer
staking without needing a separate license for VA Management and Investment
Services.
VARA, the authority
responsible for regulating crypto services in Dubai (excluding the Dubai
International Financial Centre), has significantly changed its current
legislation. This amendment allows VASPs licensed as custodians to provide
staking services to their customers from the same legal entity. The provision
of this additional service will not require a separate license for VA
Management and Investment Services but will necessitate specific additional
approval from VARA.
Furthermore,
additional licensing and supervision fees will be payable in connection with
the provision of this new service. This move aligns with the Emirate’s broader
strategy to foster innovation and growth in the financial technology sector,
ensuring that regulations are in place to maintain…
