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What Is a Virtual Asset Service Provider (VASP) in Dubai?
30 July 2025
As the digital asset industry matures, institutional investors and service providers are placing greater emphasis on regulation, compliance, and operational transparency. To meet this need, Dubai launched the Virtual Assets Regulatory Authority (VARA) in 2022, becoming the first jurisdiction in the world to establish a dedicated regulator for virtual assets. This move has positioned Dubai as a global hub for regulated digital asset activity, attracting firms seeking both innovation and regulatory certainty.
GCEX is proud to be fully licensed by VARA as a Virtual Asset Service Provider, authorised to offer broker-dealer services to institutional and qualified investors. Our status is verified on VARA’s official public register, offering our clients confidence in our compliance, governance, and operational readiness.
In this article, we explore what it means to be a VASP, explain the difference between an In-Principle Approval and a full licence, and outline how GCEX operates in Dubai.
What is a Virtual Asset Service Provider (VASP) Licence?
A VASP licence signifies that a firm is fully authorised to operate in the virtual asset sector under VARA's regulatory framework. To obtain a licence, firms must demonstrate full compliance with anti-money laundering and counter-terrorist financing laws, implement effective risk controls, establish internal governance procedures, and meet cybersecurity and capital adequacy requirements.
What services can a licensed VASP provide?
A licensed VASP may legally offer a range of services, including crypto-to-fiat and crypto-to-crypto exchange, over-the-counter trading, brokerage, custody (if licensed separately), and, where permitted, derivatives and staking. A VASP is authorised to onboard clients, scale operations commercially, and market its services publicly.
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Key Aspects of a Virtual Asset Licensing in Dubai |
Dubai (VARA) |
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Regulatory body |
Virtual Assets Regulatory Authority (VARA), dedicated to digital assets (link) |
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Regulatory framework |
Custom-built regime designed exclusively for virtual assets and Web3 |
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Licence structure |
Activity-based licences such as broker-dealer, custody, exchange, and advisory |
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Licensing process |
Two-stage process: In-Principle Approval followed by full VASP licence upon compliance |
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Scope of services |
Broad range including brokerage, OTC, exchange, staking, custody (subject to licensing) |
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Regulatory maturity |
Progressive and crypto-specific, attracting international Web3 firms |
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Capital and audit requirements |
Defined thresholds, cybersecurity standards, and mandatory regulatory audits |
GCEX’s status as a VARA‑licensed VASP in Dubai provides our clients peace of mind of working with a global, regulated, and professional-grade trading company. Our commitment to transparent execution, multi-asset liquidity, institutional technology platforms, and efficient operational workflows makes us a compelling partner for institutional and professional traders.
How GCEX Supports Institutional and Professional Traders
Institutional and professional traders operate in an environment that demands speed, precision, and full regulatory compliance. GCEX is built specifically to meet these requirements, offering a comprehensive suite of services, infrastructure, and technology to support hedge funds, brokers, asset managers, and proprietary trading firms.
GCEX operates within strict regulatory frameworks, giving clients the assurance of working with a firm that prioritises compliance, governance, and operational transparency. Crucially, all liquidity is sourced from trusted Tier 1 providers, helping to ensure unbiased pricing and best execution standards.
GCEX provides institutional access to deep and diverse liquidity across multiple asset classes. Clients can trade spot foreign exchange, digital assets such as Bitcoin and Ethereum (including spot and contracts for difference). Through connectivity with global venues, GCEX offers high-speed execution, tight spreads, and access to deep liquidity pools, which are essential for firms executing at scale.
To support advanced trading workflows, GCEX has developed a number of XplorDigital solutions. XplorTrader is a full-featured margin trading platform with tools for order management, funding, risk control, and professional-grade charting. XplorSpot offers a streamlined interface on-ramp/off-ramp of digital assets, and XplorBroker is a white-label platform that allows wealth managers and brokers to launch fully compliant trading services under their own brand. Each of these platforms is built for seamless API integration, enabling clients to connect them to their existing trading infrastructure with ease.
GCEX further enhances operational efficiency through its Open API, which gives clients real-time access to live account balances, trading activity, portfolio performance, and regulatory reporting. This automation reduces manual reconciliation, supports compliance audits, and simplifies back-office operations for teams that manage multiple accounts or complex strategies. In addition, GCEX has approval to operate a Client Money Account (CMA), so that all your money remains segregated from our own funds.
For asset managers and funds, GCEX also offers XplorAllocate, a purpose-built tool for trade allocation. It enables bulk execution with automatic post-trade distribution across sub-accounts, providing clear audit trails and improving execution efficiency. Alongside this, clients benefit from detailed execution analytics, including transaction cost analysis, slippage monitoring, and latency reporting. These tools help traders fine-tune performance while meeting regulatory obligations related to best execution.
Finally, GCEX supports 24-hour trading across both digital assets and foreign exchange markets. This global, round-the-clock access is backed by dedicated operational and client support teams who assist with onboarding, system integration, and ongoing account management. Whether a client is executing across time zones or managing risk in fast-moving markets, GCEX provides the infrastructure and service continuity required for institutional trading.
Contact Our Team
GCEX offers a trusted, regulated, and scalable solution for institutions seeking to trade digital assets and related products with confidence.
Whether you’re a hedge fund, broker, family office, or trading desk, GCEX delivers the infrastructure, tools, and regulatory clarity to help you scale securely in the digital asset space.
Speak to a member of our team using the calendar below to discuss your trading and compliance needs, and see why GCEX is a leading prime brokerage for institutional and professional clients.
The content of this material is for informative purposes only and does not constitute investment advice, a recommendation or solicitation to conclude a transaction and is for professional and institutional clients only. It is not directed to Retail Clients or residents of any jurisdiction where FX, CFDs and/or Digital Assets trading is restricted or prohibited by local laws or regulations. FX, CFDs and Digital Assets are leveraged products that can result in losses exceeding your deposit. Trading of these products and digital assets carry a high level of risk and may not be suitable for everyone. Before deciding to trade you should carefully consider your objectives, financial situation, level of experience and risk appetite.
