Strategy for Regulated UAE Market

The United Arab Emirates has established one of the most defined regulatory frameworks for crypto exchanges. Dubai’s Virtual Assets Regulatory Authority issues licenses, while Abu Dhabi’s Financial Services Regulatory Authority regulates platforms operating in the Abu Dhabi Global Market. The clarity has drawn international platforms seeking formal authorization rather than operating in regulatory gray zones.

Just last week, on February 12, 2026, perpetuals-focused trading platform Flipster joined the growing list, securing in-principle approval from VARA through its local entity, Flipster FZE. It’s the first big regulatory green light for the exchange in the UAE, paving the way for regulated spot trading to start with more products likely to follow once full licensing clears.

BeInCrypto spoke with Benjamin Grolimund, General Manager at Flipster FZE, to dig into the decision: why the UAE became Flipster’s debut regulated market, the internal efforts undertaken to strengthen compliance standards, and what this says about where the competitive landscape for exchanges is heading in 2026.

Building Within a Defined Framework

Securing in-principle approval signals Flipster’s commitment to building a long-term presence in the UAE, according to Grolimund. Indeed, the UAE’s regulatory clarity was central to the decision. 

Grolimund sees that rather than responding to crypto reactively, Dubai established a dedicated supervisory authority with defined expectations for operators. He told BeInCrypto:

“The UAE combines regulatory clarity with economic ambition. That clarity matters. Regulatory predictability is a competitive advantage, particularly for an exchange planning long-term expansion.”

Geography also factored into the equation. The UAE connects major financial centers across Asia and Europe, offering exchanges a regulated base from which to serve multiple markets. For a platform expanding beyond one region, that positioning carries operational advantages.

Grolimund added:

“There is also a long-term orientation to how digital infrastructure is being built in the Middle East. Digital assets are part of broader economic diversification efforts, not treated as a passing cycle. That environment supports sustainable growth rather than volatility-driven expansion.”

Institutionalizing Readiness

Progressing from in-principle approval toward full authorization required operational discipline beyond product expansion.

Preparing for supervised activity in the UAE meant formalizing governance structures, refining risk assessment methodologies, and clarifying reporting lines aligned with VARA’s expectations. Monitoring systems were enhanced, onboarding controls strengthened, and accountability mapped across product, engineering, legal, and compliance teams.

“Growth under supervision demands clarity of accountability,” Grolimund said.

In his view, operating in the UAE required embedding regulatory alignment into core processes rather than treating compliance as an external layer. Accountability structures were clarified, risk controls strengthened, and reporting frameworks aligned early in the process.

Flipster has also established a physical presence in Dubai, relocating talent from global offices and hiring locally. The license, he emphasized, is not being treated as a convenience structure.

“Some companies treat licensing as an expansion milestone. We see it as the starting point of building something durable.”

Performance Under Supervision

The in-principle approval allows Flipster FZE to move toward spot trading as its initial licensed activity in the UAE. As regulatory licensing becomes standard among global exchanges, the distinction increasingly lies in how platforms operate once supervision begins.

Flipster built its infrastructure for active traders, prioritizing deep liquidity and efficient execution across perpetual futures markets. Grolimund said entering a regulated jurisdiction does not change that foundation. It raises the standards around it.

“Entering a regulated market does not change our focus on performance,” he said. “It challenges us to maintain speed and product sharpness while operating with stronger governance.”

Rather than treating compliance as a separate layer, he described the objective as integrating governance into the operating core. Matching engines, liquidity systems, and risk controls must function within clearly defined escalation pathways and reporting structures.

“Speed without structure does not last,” Grolimund affirmed.

From Cycles to Structure

Looking at the larger picture, Grolimund said the UAE is expected to serve as a foundational regulated market within Flipster’s broader expansion strategy over the next several years. The immediate priority is progressing from in-principle approval to full authorization and sustaining operations under VARA’s oversight.

The move reflects a broader recalibration across the exchange sector. As structured regulatory regimes expand, licensing is becoming a baseline requirement rather than a differentiator. The distinction may lie in whether platforms can sustain liquidity and execution quality while operating under supervision.

“Our investment in the UAE reflects how we intend to approach every market we enter,” Grolimund said.