Tightening oversight in Dubai
The timing of BitGo’s expansion in Dubai is notable. VARA said this week that it had imposed financial penalties on 19 entities for unlicensed virtual asset activity and breaches of its marketing rules. Among those sanctioned were TON DLT Foundation and Hokk Finance, both cited in enforcement filings this year.
VARA, established in 2022 under a directive from Sheikh Mohammed bin Rashid Al Maktoum, oversees crypto‑related businesses in Dubai’s special development and free zones. Its regulatory model has drawn attention from exchanges, wallet providers, and token projects seeking a middle ground between Western‑style compliance and the region’s capital‑friendly framework.
While many firms are still in the process of securing full authorization, Dubai’s authorities have signaled that unlicensed activity will face escalating penalties. The twin messages — tighter enforcement and continued licensing approvals — reflect an effort to project credibility while maintaining the city’s reputation as a fintech gateway.
BitGo’s global playbook
For BitGo, the approval marks another step in its bid to deepen international regulatory standing ahead of a potential US stock market listing. In September, the California‑based company filed a Form S‑1 registration with the US Securities and Exchange Commission (SEC), a preliminary move toward an initial public offering.
As of June 30, BitGo reported managing more than $90 billion in digital assets, underscoring its role as a key infrastructure provider for institutional investors, exchanges, and stablecoin issuers.
The company’s push into the Middle East and Europe contrasts sharply with its early compliance missteps. In 2020, BitGo paid about $100,000 to settle allegations that it failed to properly screen wallets linked to sanctioned jurisdictions — an episode that prompted it to tighten its risk controls and compliance procedures.
The new approvals suggest a deliberate pivot: establishing regulated footprints across multiple continents to attract institutional clients wary of opaque jurisdictions and sudden enforcement risks.
A growing divide
Dubai’s crypto framework continues to evolve as global regulators move at different speeds. The European Union’s Markets in Crypto‑Assets (MiCA) regulation is set to take full effect in 2025, while the United States remains in a slow tug‑of‑war over how digital asset firms should be classified and supervised.
By contrast, VARA’s rapid rollout of licenses — coupled with public enforcement actions — is turning the Emirate into one of the few jurisdictions where both clarity and consequences are visible.
For BitGo, the timing could prove fortuitous. With crypto markets showing renewed institutional interest and regulatory regimes maturing, the company’s strategy appears to be converging on a simple formula: get licensed everywhere that matters.