Dubai OTC Crypto Market Booms with VARA Licenses and Favorable Tax Structure

The city of Dubai has established itself as a major hub for over-the-counter (OTC) crypto trading, thanks to its favorable regulatory environment and tax structure. The Virtual Assets Regulatory Authority (VARA), established in 2022 under Dubai Law No. 4, has issued approximately 50 licenses to OTC desks since its inception, creating one of the most active OTC trading environments globally.

These licensed desks offer bilateral trades with fixed-price quotes and reduced exposure to market slippage, targeting institutional clients and high-net-worth individuals with minimum transaction sizes commonly starting around $100,000. Major OTC operators in the UAE include Binance FZE, OKX, Crypto.com, Laser Digital, Fuze Finance, CoinMENA, and Rain ADGM, each operating under distinct regulatory frameworks and license categories.

The UAE charges 0% personal income tax on crypto gains, with a 9% corporate tax applying only above AED 375,000 in annual profit. Crypto-to-crypto transfers remain exempt from value-added tax. Chainalysis estimated that the UAE received $56 billion in on-chain crypto value between July 2024 and June 2025, representing 33% year-over-year growth.

VARA's CEO, Matthew White, oversees all crypto-related activities in Dubai outside the Dubai International Financial Centre. The authority has maintained a more liberal approach to crypto licensing compared to other jurisdictions, attracting firms like Laser Digital, which became the first firm approved by VARA to offer OTC crypto options in August 2025.