Regulatory Milestone Strengthens BitGo’s Global Expansion
BitGo, a leading digital asset infrastructure provider, has obtained a broker-dealer license from Dubai’s Virtual Assets Regulatory Authority (VARA) — a move that expands the firm’s institutional services across the Middle East and North Africa (MENA) region.
The approval allows BitGo MENA to provide regulated digital asset trading and intermediation services to institutional clients within Dubai’s growing virtual asset ecosystem.
“This approval allows us to serve institutional clients with greater scale, confidence, and integrity, while underscoring Dubai’s accelerating digital asset momentum,” said Ben Choy, General Manager of BitGo MENA.
The license approval marks another step in BitGo’s global compliance drive, following the company’s recent authorization in Germany to offer crypto services under the Federal Financial Supervisory Authority (BaFin) framework.
Dubai Tightens Oversight: 19 Firms Penalized
BitGo’s announcement coincided with VARA’s enforcement report, in which the regulator disclosed it had issued financial penalties against 19 firms involved in unlicensed virtual asset activities and violations of marketing rules.
The regulator stated these actions were part of its ongoing efforts to enforce compliance within Dubai’s fast-growing digital economy. Notably, enforcement cases in 2025 included actions against entities such as TON DLT Foundation and Hokk Finance for regulatory breaches.
VARA reaffirmed its stance that all virtual asset firms must operate under full authorization and marketing compliance to protect investors and market integrity.
Dubai’s Crypto Hub Vision Strengthened
Since its establishment in 2022 under Sheikh Mohammed bin Rashid Al Maktoum, VARA has positioned Dubai as a global hub for compliant crypto innovation. The Emirate’s framework enables companies to operate within special development and free zones, offering a balance between regulatory clarity and innovation flexibility.
As more global firms seek entry into Dubai, BitGo’s approval highlights confidence in the city’s regulatory maturity and its growing status as a crypto-financial hub in the Middle East.
BitGo’s Path Toward a U.S. Public Listing
BitGo’s expansion into Dubai and Europe comes as the firm prepares for a U.S. initial public offering (IPO). In September 2025, BitGo filed its S-1 registration with the U.S. Securities and Exchange Commission (SEC) — a major step toward becoming a publicly traded entity.
The California-based company reported over $90 billion in digital assets under custody as of June 30, 2025, underscoring its growing footprint across global markets.
This follows a period of regulatory adjustments for BitGo, including a 2020 settlement with U.S. authorities worth $100,000 over alleged compliance lapses related to transactions with sanctioned countries.
Now, the company’s simultaneous progress across the U.S., Europe, and the Middle East reflects a strategic focus on regulatory alignment, institutional trust, and market expansion.
Dubai’s Regulatory Push Signals a New Era
The VARA enforcement wave, paired with BitGo’s landmark license, demonstrates Dubai’s dual focus on innovation and investor protection.
With over a dozen international firms now pursuing VARA approval, analysts believe Dubai is fast emerging as a global anchor point for institutional-grade digital asset operations.
“BitGo’s approval amid enforcement actions shows that Dubai welcomes innovation — but only within clear, regulated boundaries,”.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.