Revolut clears first hurdle for Dubai crypto launch

Revolut has secured in-principle approval from Dubai’s Virtual Assets Regulatory Authority to offer cryptocurrency services in the UAE, advancing the financial technology group’s plan to build a regulated digital finance platform in the country.

The proposed Virtual Assets Service Provider licence would permit Revolut to provide broker-dealer, management and investment, and exchange services. Full operations will remain subject to the company meeting VARA’s conditions and obtaining final regulatory clearance.

Once authorised, eligible UAE customers will be able to buy, sell and hold digital assets through Revolut’s retail application and Revolut X, its standalone cryptocurrency trading platform. The company has not announced a launch date, list of supported assets or local fee structure.

The approval gives Revolut a route into one of the world’s most closely watched cryptocurrency markets. Dubai has attracted exchanges, custodians, brokers and institutional digital asset businesses through a licensing framework that places companies under detailed governance, compliance, cybersecurity and anti-money-laundering requirements.

VARA regulates virtual asset activity across Dubai’s mainland and free zones, apart from the Dubai International Financial Centre. Applicants follow a two-stage licensing process, meaning an in-principle approval does not allow a company to begin serving customers immediately.

Revolut said it intends to work with the regulator to complete the remaining requirements. The company’s UAE digital asset business is headed by Joseph Khair, who described the preliminary approval as a foundation for introducing cryptocurrency products in a regulated environment.

The development follows Revolut’s receipt of Stored Value Facilities and Retail Payment Services Category II licences from the Central Bank of the UAE in June. Those approvals completed a process that began with preliminary clearance in September 2025.

The central bank licences allow Revolut to prepare payment, card and money-management services for the local market. Its planned offering includes physical and virtual cards, domestic and international transfers and the ability to hold and manage multiple currencies through one application.

Adding a VARA licence would enable Revolut to combine conventional payment services and cryptocurrency trading within a broader locally regulated ecosystem. That model could distinguish the company from specialist exchanges that focus principally on digital assets.

Revolut serves more than 75 million customers worldwide and says more than 16 million use its cryptocurrency products. The group began offering digital asset trading in Europe several years ago and has expanded the service to include transfers, staking in selected markets and a dedicated exchange for more active traders.

Revolut X was developed to provide lower-cost trading and more advanced market functions than the company’s main consumer application. Its planned UAE introduction points to an effort to attract both retail users seeking simplified access and experienced customers demanding exchange-style tools.

The UAE has become a central market in the contest between global financial technology companies, banks and cryptocurrency platforms. Its large expatriate population, substantial cross-border payment flows and high level of smartphone use have made it attractive to businesses offering multicurrency accounts and international transfers.

Competition is also intensifying as established exchanges expand regulated operations and financial institutions explore tokenisation, custody and blockchain-based settlement. Dirham-backed stablecoins and digital asset payment initiatives are adding another layer to the market, although retail adoption remains exposed to price volatility and fraud risks.

Revolut will need to demonstrate that its systems meet local requirements on customer screening, asset protection, transaction monitoring, market conduct and technology resilience. VARA’s framework also places obligations on licensed businesses covering disclosures, complaints, record-keeping and the segregation of client assets.

The company’s entry could widen access to regulated cryptocurrency trading, but the final product will depend on the conditions attached to its licence. Authorities have stressed that virtual assets remain high-risk products and that regulatory authorisation does not eliminate the possibility of losses.