Animoca Brands Clears the Final VARA Hurdle
Animoca Brands, the Hong Kong-founded Web3 investment powerhouse behind The Sandbox, Moca Network, and Open Campus, has secured a full Virtual Asset Service Provider (VASP) license from Dubai's Virtual Assets Regulatory Authority (VARA). The license, recorded on VARA's public register on February 5, authorizes the company to provide broker-dealer services and virtual asset management and investment services for institutional and qualified investors across the Emirate of Dubai, excluding the Dubai International Financial Centre (DIFC).
Omar Elassar, Managing Director for the Middle East and head of global strategic partnerships at Animoca Brands, said the approval "enhances our ability to engage with Web3 foundations as well as global institutional and qualified investors within a well-regulated framework."
The announcement caps a 16-month regulatory journey that began with an in-principle VARA approval in October 2025, followed by a separate in-principle approval from Abu Dhabi's ADGM in November 2025.
Why a 600-Company Portfolio Needed This License
Animoca Brands is not a typical crypto startup seeking regulatory cover. The company manages a portfolio spanning more than 600 companies and digital-asset initiatives, with total assets reported at approximately $4.3 billion as of late 2024. Its investments touch nearly every vertical in Web3: gaming (The Sandbox), education (Open Campus), identity (Moca Network), DeFi infrastructure, NFT marketplaces, and metaverse platforms.
Until now, those investments operated without a formal brokerage framework in Dubai. The full VARA license changes that calculus in two important ways. First, it allows Animoca to offer broker-dealer services, meaning it can facilitate trades and transactions in virtual assets on behalf of institutional clients rather than only investing its own capital. Second, the VA Management and Investment Services authorization lets Animoca formally manage third-party capital in crypto and digital assets under a regulated umbrella.
For a firm that has been one of the most prolific Web3 investors for years, the license transforms an investment thesis into a regulated business line. Animoca can now onboard sovereign wealth funds, family offices, and qualified investors who require regulated counterparties before deploying capital into digital assets.
The Dubai Regulatory Machine in Numbers
VARA, established in March 2022, has quietly built one of the world's most comprehensive crypto licensing frameworks. The regulator now oversees 507 licensed VASPs managing combined assets exceeding $25 billion. That roster includes global heavyweights like Binance, OKX, Bybit, and Crypto.com, all of which hold full operational licenses.
VARA's enforcement posture has also sharpened. The regulator took action against 19 unlicensed operators in recent enforcement rounds, signaling that operating without a license in Dubai is no longer a gray area. BitGo secured its own broker-dealer license from VARA in October 2025, further validating the institutional corridor that Animoca is now entering.
The distinction between VARA and ADGM is worth noting. VARA governs Dubai's mainland and free zones, while ADGM operates as Abu Dhabi's international financial center with its own regulatory regime. Animoca holding approvals from both creates a dual-jurisdiction footprint across the UAE's two primary financial hubs.
What This Means for Institutional Capital Flows
The timing of Animoca's full license aligns with a broader shift in how institutional money enters crypto. Regulated broker-dealer services lower the friction for pension funds, endowments, and sovereign wealth entities that face compliance mandates requiring licensed intermediaries.
Dubai has positioned itself as the preferred jurisdiction for this institutional onramp. The emirate's zero-income-tax policy, combined with VARA's clear licensing tiers (Advisory, Broker-Dealer, Custody, Exchange, Lending, Transfer and Settlement, and VA Management), gives institutional allocators a menu of regulated service providers to work with.
Animoca's license is particularly significant because it combines brokerage with investment management. Most VARA licensees hold one or the other. Having both under one roof means Animoca can source deals, execute trades, and manage portfolios for institutional clients, a full-stack offering that mirrors traditional finance prime brokerage.
For the broader crypto card and payments ecosystem, more institutional capital flowing through regulated UAE channels strengthens the foundation. Card issuers operating in the region, including OKX, Bybit, and Binance, benefit from a deeper pool of regulated liquidity and a more mature counterparty landscape.
The Nasdaq Question Looming Over Everything
Animoca Brands is simultaneously pursuing an approximately $1 billion Nasdaq listing through a reverse merger with Currenc Group, with the transaction expected to close by the end of 2026. The company was valued at $5.9 billion during its 2022 fundraising rounds, but secondary market valuations dropped to roughly $1.5 billion by mid-2024.
A regulated UAE presence strengthens the Nasdaq listing narrative. Public market investors evaluating a crypto-native investment firm want to see licensed operations in credible jurisdictions, not just a portfolio spreadsheet. The VARA license, combined with the ADGM approval, gives Animoca two regulated anchors in one of crypto's most developed regulatory environments.
In January 2026, Animoca also acquired gaming and digital collectibles company Somo, expanding its blockchain gaming vertical. The acquisition, the VARA license, and the Nasdaq pursuit suggest a company consolidating its position ahead of a public debut.
FAQ
What services can Animoca Brands now offer in Dubai? The VARA license authorizes two categories: broker-dealer services (facilitating virtual asset trades for clients) and VA management and investment services (managing third-party capital in digital assets). Both are limited to institutional and qualified investors within the Emirate of Dubai, excluding the DIFC.
How does VARA compare to other crypto regulators? VARA was the world's first independent virtual asset regulator when it launched in March 2022. It now oversees 507 licensed VASPs and has taken enforcement action against unlicensed operators. Its framework includes seven distinct license categories covering everything from advisory to custody to lending.
Does Animoca Brands issue crypto cards? No. Animoca Brands is an investment and platform company, not a card issuer. However, its regulated brokerage services could channel institutional capital toward crypto payment and spending products offered by other VARA-licensed entities in Dubai.
What is the timeline for Animoca's Nasdaq listing? Animoca Brands entered a non-binding agreement with Nasdaq-listed Currenc Group for a reverse merger targeting approximately $1 billion in valuation. The transaction is expected to close by the end of 2026.
Overview
Animoca Brands has secured a full VASP license from Dubai's VARA, authorizing broker-dealer and investment management services for institutional investors. The license caps a 16-month regulatory journey and positions the 600-company portfolio manager to formally onboard institutional capital in one of crypto's most developed regulatory environments. With 507 VASPs now licensed under VARA and $25 billion in combined assets under management, Dubai continues to cement its role as the global hub for regulated crypto services. Animoca's simultaneous pursuit of a Nasdaq listing through a reverse merger adds another dimension: a regulated UAE brokerage backing a publicly traded Web3 investment firm.
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