Revolut received principled approval for cryptocurrency services from United Arab Emirates

Revolut received approval in principle from Dubai VARA to expand its crypto business in United Arab Emirates

British financial technology company Revolut has obtained approval in principle from the Dubai Virtual Assets Authority (VARA) to expand its crypto related services in United Arab Emirates. The U.K. -based company said regulatory approval would allow it to provide a range of virtual asset services to United Arab Emirates users through the Revolut app and the Revolut X exchange.

This development occurred after the Central Bank of the United Arab Emirates approved the Revolut payment service. In an announcement released on Wednesday, Revolut said VARA had granted the company a principled license to operate broker-dealers, management and investment, and exchange services in the United Arab Emirates, and viewed the move as a step towards "deploying trusted virtual asset services in a regulated environment."

Core Points

VARA's approval-in-principle enables Revolut to provide broker-dealer, management and investment and exchange services for digital assets in the United Arab Emirates. The approval came after the Central Bank of the United Arab Emirates approved the Revolut payment business, demonstrating coordination among regulators. Revolut expects that United Arab Emirates users will be able to purchase, sell and hold digital assets through the Revolut app and Revolut X. The move is part of Revolut's broader expansion plan after it received a British banking licence in March this year. In addition, Revolut has previously stated that it plans to remove the USDT from the European Economic Area and Switzerland starting in August based on MiCA-related risks and license review.

VARA approval-in-principle paves the way for Revolut's regulated development in United Arab Emirates

In a statement released this week, Revolut said VARA's authority-in-principle would allow it to introduce virtual asset services through existing user interfaces under the Dubai Virtual Asset Licensing Framework. The company did not describe the specific subsequent licensing steps required to fully implement these businesses, but described them as "laying the foundation" for deploying services in a regulated environment.

For investors and market participants, the significance lies in how quickly mature financial platforms are integrating with the emerging regulatory architecture of the United Arab Emirates. VARA's approach-which grants both "approval-in-principle" and formal licenses-creates a structured path for operators to expand while meeting regulatory conditions.

VARA maintains a public list of licensed entities. As of the time of publication of this article, the regulator lists 51 companies licensed to provide crypto-related services in the United Arab Emirates and 22 entities that have received approval in principle.

Payment first: Central Bank Conditions and Their Implications

Revolut pointed out that VARA's decision was made after the Central Bank of the United Arab Emirates gave a "green light" for its payment-related businesses. This sequencing suggests that, at least for Revolut's roadmap, crypto services are being packaged with broader payment and financial compliance processes rather than being treated as separate matters.

For users, the practical result is that because the company handles payment regulation while regulating virtual assets, its application-based digital asset trading experience can be rolled out with fewer friction points. This also provides a useful signal to other fintech companies: In the United Arab Emirates, the expansion of the crypto business may depend on meeting cross-regulatory requirements, not just virtual asset licensing.

Expansion momentum: From UK banking licenses to pending applications in the United States and Peru

Revolut's announcement in the United Arab Emirates builds on its recent progress in traditional financial licenses. According to previous reports, the company obtained a British banking license in March this year. The expansion plan announced by Revolut also includes applying for a bank charter in the United States and a license in Peru.

From an industry perspective, Revolut's model is revealing: It continues to leverage regulatory milestones in core banking to support downstream products, including digital assets. While access to crypto services remains subject to licensing frameworks, the ability to operate in regulated payment and banking environments is critical to settlement processes, custody models and compliance controls.

The United Arab Emirates approval comes as European encryption product decisions are being adjusted

Even as the United Arab Emirates promotes business, Revolut has also revealed plans to adjust encryption products in other regions. Last week, a Revolut spokesman said the company plans to remove the Tether USDt (USDT) from the European Economic Area and Switzerland starting in August.

Revolut linked the decision to its review of crypto services and risk considerations under the European Union Crypto Asset Markets Regulation (MiCA). MiCA requires crypto asset service providers to obtain licenses by July 1, and Revolut's approach suggests that companies may realign their stablecoin product lines rather than retaining all products during the licensing transition period.

This comparison-obtaining approval-in-principle in the United Arab Emirates while cutting business in Europe-highlights the broader reality facing crypto platforms: Regulatory compliance can drive both expansion and contraction, depending on jurisdiction requirements, product classification and risk assessment results.

Next Points of Focus

Revolut's approval-in-principle in the United Arab Emirates is an important step, but users and market observers should focus on the subsequent regulatory milestones required for full implementation, as well as the company's evolution of stablecoins and licensing strategies under the MiCA framework.