Dubai’s Virtual Assets Regulatory Authority (VARA) has issued a broker-dealer license to BitGo MENA, the regional arm of the digital asset infrastructure firm. This event occurs as the regulator announced financial penalties against 19 companies for regulatory breaches, marking a clear step forward in virtual asset regulation in Dubai. The approval was confirmed by Ben Choy, General Manager of BitGo MENA.
The new license allows BitGo to offer regulated digital asset trading and intermediation services to institutional clients within Dubai’s jurisdiction. This is a strategic move for the firm, which also received a similar license in Germany as part of its international expansion plan. This approval comes at a time of regulatory consolidation, as VARA has intensified its oversight since its establishment in 2022.
In contrast to BitGo’s success, the regulatory body has imposed economic sanctions on nineteen companies. These measures were taken for conducting virtual asset activities without the proper license and for violating the regulator’s marketing regulations. Among the firms affected in 2025 are the TON DLT Foundation and Hokk Finance, demonstrating the seriousness of market surveillance by the authority.
What Does BitGo’s New License Mean for Investors?
Obtaining this license by a relevant player like BitGo is a positive signal for the institutional market. It brings greater confidence and integrity to the ecosystem, making it easier for large investors to operate securely. These types of regulatory approvals are crucial for the sector’s maturity, as they set a clear precedent for other companies looking to establish themselves in the region.
The impact of these dual measures is significant. On one hand, a secure and regulated environment is fostered, attracting serious investors. On the other hand, a strong message is sent to companies that do not comply with the established rules. The virtual asset regulation in Dubai seeks to balance innovation with investor protection, a fundamental step in its positioning as a global financial hub for the new digital economy.
This dual announcement underscores Dubai’s strategy to become a global hub for digital assets, but under a strict regulatory framework. Companies that comply with the guidelines will find a favorable environment for growth. Meanwhile, those operating outside the law will face direct consequences, consolidating a more transparent and secure market for all participants in the near future.
