Dubai Greenlights Animoca’s Crypto Ambitions
Animoca Brands, the Hong Kong-based blockchain investment firm, has received a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA).
Dubai established VARA in March 2022 as part of its push to regulate digital assets across the mainland and free zones, except for the Dubai International Financial Centre (DIFC). With this license, Animoca can now serve institutional and qualified investors from within Dubai’s jurisdiction, but activities remain restricted outside DIFC due to separate oversight by the Dubai Financial Services Authority (DFSA).
The VASP license was officially approved and issued on February 5, 2026, according to company announcements.
Focus Shifts: Institutional Investors Targeted
The VASP license is tailored for business with institutional and qualified investors, rather than retail clients. Under VARA’s oversight, Animoca’s broker-dealer and investment management services will be available to these larger market participants both in and from Dubai. This focus is consistent with recent trends in the region: BitGo, for example, obtained a similar broker-dealer license for its Middle East unit in October 2025.
On paper, Dubai offers a progressive regulatory framework; however, the exclusion of DIFC—one of the city’s major financial hubs—means there are still boundaries to expansion. The DFSA recently tightened rules even further by banning privacy tokens such as Monero and Zcash and requiring ongoing suitability checks for all digital assets handled by regulated firms.
VARA’s Stamp: What It Enables
The new license positions Animoca Brands to extend its reach in a jurisdiction that has become a magnet for crypto businesses since VARA’s inception two years ago. The company manages a portfolio of more than 600 blockchain investments worldwide—including well-known platforms like The Sandbox and Moca Network—and will now be able to offer regulated services directly from Dubai. In January 2026, Animoca expanded further by acquiring gaming and collectibles firm Somo, signaling its intent to deepen its ecosystem.
It’s unclear if retail investors will eventually gain access under future regulatory changes.
Regulatory Momentum: Abu Dhabi to Dubai
Animoca Brands’ regulatory progress in the UAE has accelerated over recent months. In November 2025, the company secured in-principle approval as a regulated fund manager in Abu Dhabi—a separate financial center with its own ruleset. Now with VARA’s VASP license granted in February 2026, Animoca is positioned to operate across both major UAE markets, though each comes with distinct compliance requirements.
Decrypt.co reports that Dubai’s DFSA updated its framework last month to prohibit privacy tools such as mixers or tumblers and redefined what qualifies as fiat-backed tokens—excluding many popular stablecoins from regulated use. These evolving standards reflect heightened scrutiny on digital asset activities within the emirate.
Why Dubai’s License Matters Now
For Animoca Brands, regulatory clarity is crucial as it seeks to expand its Web3 offerings beyond Asia. The timing is notable: global crypto regulation remains fragmented, but Dubai has moved quickly since March 2022 to establish itself as a regional hub for digital assets. With more than 600 investments spanning blockchain gaming, decentralized platforms, and token initiatives, Animoca stands out among industry peers seeking compliant growth paths into new markets.
Yet while this VASP license opens doors for institutional business in Dubai starting February 2026, significant limitations remain—not least the exclusion of DIFC and increasingly strict local rules on asset types and privacy features. Whether these frameworks will adapt further is uncertain. For now, Animoca Brands’ latest regulatory win signals both opportunity and complexity for crypto firms eyeing expansion across the Middle East.
The Key Lessons
- •Animoca Brands received a Virtual Asset Service Provider (VASP) license from Dubai’s VARA on February 5, 2026.
- •The license allows Animoca Brands to offer broker-dealer and asset management services to institutional and qualified investors, excluding DIFC.
- •Animoca Brands manages a portfolio of over 600 blockchain investments, including The Sandbox and Moca Network.
What deserves close attention
If Animoca Brands begins offering broker-dealer and digital asset management services to institutional and qualified investors in Dubai following the February 5 approval of its VASP license by VARA, it would immediately mark the company's operational entry into the regulated Dubai market outside the DIFC; however, the exact launch date for these services remains unclear.