Key Insights:
- Animoca Brands’ VARA license permits broker-dealer services in Dubai only for institutions.
- The license encompasses asset management and does not involve DIFC under independent supervision.
- Dubai regulators have strengthened AML regulations and imposed fines on violators.
Animoca Brands has obtained a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority, enabling the Web3 investor and platform developer to offer regulated broker-dealer and investment management services related to virtual assets to institutional and qualified investors in and from the emirate.
Animoca Brands VARA VASP License Expands Regulated Scope
The license, issued by the Virtual Assets Regulatory Authority (VARA) on Monday, permits the Hong Kong-founded company to operate across Dubai’s mainland and free zones, except in the Dubai International Financial Centre (DIFC), which is overseen by a separate regulator.
The approval places Animoca Brands under VARA’s supervisory framework for specific virtual asset activities targeting institutional and qualified clients.
Under its Virtual Asset Service Provider license, Animoca Brands is authorized to conduct broker-dealer services and provide investment management for virtual assets. The services are primarily directed at institutional and qualified investors, consistent with VARA’s regulatory framework for market participants operating in Dubai.
Omar Elassar, managing director for the Middle East and head of global strategic partnerships at Animoca Brands, said the license strengthens the company’s ability to engage with Web3 foundations and institutional participants within a regulated environment.
Source: Animoca Brands
The firm stated that the approval enhances its capacity to operate under defined supervisory standards while targeting professional investor segments.
Additionally, the Animaca investment portfolio is spread across The Sandbox, Open Campus, and Moca Network, among others. The company has indicated that its investment portfolio covers over 600 companies and digital asset projects.
In January, Animoca Brands acquired Somo, a gaming and digital collectibles company, and incorporated its playable and tradable collectibles into its larger blockchain-based portfolio.
Tighter Oversight of Dubai Regulatory Environment
The Animoca Brands VARA VASP license was issued amid broader regulatory adjustments in Dubai’s digital asset landscape. While VARA regulates virtual asset activities across most of Dubai, the Dubai Financial Services Authority governs financial services within the DIFC free zone.
In recent weeks, the DFSA prohibited licensed exchanges and financial institutions in the DIFC from facilitating privacy-focused tokens, including Monero and Zcash. The regulator cited anti-money laundering and sanctions compliance risks as the basis for the restrictions.
The DFSA also removed its approved token whitelist, placing responsibility for ongoing asset suitability assessments on licensed firms.
The updated framework, which came into force last month, bars regulated entities from using privacy-enhancing tools such as mixers, tumblers, and other obfuscation mechanisms designed to conceal transaction details.
In addition, the DFSA revised its definition of “fiat crypto tokens.” Under the updated rules, the category applies exclusively to tokens pegged to fiat currencies and backed by high-quality, liquid assets capable of meeting redemption demands during periods of market stress. The change narrows the scope of tokens eligible under the designation.
Compliance With International AML Standards
The regulatory changes in Dubai have been associated with global anti-money laundering frameworks by industry players. Nitesh Mishra, co-founder and chief technology officer of ChaiDEX Capital, said stricter token standards and AML requirements provide regulatory clarity for institutional participants.
He added that regulatory authorities in Dubai are aligning their frameworks with global expectations, including Financial Action Task Force standards and sanctions enforcement priorities. Separately, India’s Financial Intelligence Unit updated its AML and counter-terrorism financing guidelines last month.
The revised rules require regulated virtual digital asset service providers to block deposits, withdrawals, and trading of privacy tokens and coin mixers, citing risks of money laundering and terrorist financing.
Regional and International Environment
The Animoca Brands VARA license is another addition to a list of digital asset companies obtaining a regulated status in the city of Dubai. In October 2025, the digital asset infrastructure company BitGo was granted a broker-dealer license by VARA, allowing its Middle East and North Africa division to provide regulated trading and intermediation services for institutional clients in Dubai.
Previously, VARA had fined 19 companies for operating illegally licensed virtual assets and for breaching its marketing rules. The enforcement actions formed part of its supervisory mandate over digital asset service providers operating within its jurisdiction.
Outside the United Arab Emirates, other jurisdictions have also updated their anti-money laundering standards for virtual asset service providers.
Last month, India’s Financial Intelligence Unit revised its AML and counter-terrorism financing guidelines to require regulated virtual digital asset service providers to block deposits, withdrawals, and trading of privacy tokens and coin mixers, citing elevated risks.
