What is a broker-dealer?
A broker-dealer is a firm that buys and sells assets in two roles: as a broker it executes client orders, and as a dealer it trades for its own account as principal. In Dubai, offering these services in virtual assets is a regulated activity requiring a VARA Broker-Dealer licence.
KEY FACTS
| The two roles | Broker (executes client orders) + dealer (trades as principal) |
|---|---|
| Regulator in Dubai | VARA (outside the DIFC) |
| VARA licensed activity | Broker-Dealer Services |
| IWGT licence | VL/24/12/002 (Broker-Dealer) |
| IWGT spread | 0.08%–0.40%, by ticket size |
Source: VARA Virtual Assets and Related Activities Regulations 2023 and IWGT published pricing bands, as of September 2026.
What does a broker-dealer do?
As a broker the firm arranges or executes orders on a client's behalf; as a dealer it buys and sells for its own account, quoting a price from its own book. Under VARA's Regulations (Schedule 1), Broker-Dealer Services covers arranging and accepting orders, matching buyers and sellers, dealing as principal or for clients, market making, and placement for token issuers. IWGT holds this activity under licence VL/24/12/002, shown in the licence section of the main page.
Each VARA activity is licensed separately: a Broker-Dealer licence does not by itself permit running an exchange or holding client assets in custody. It covers Dubai outside the DIFC (DFSA) and ADGM (FSRA). Before sending anything, check the desk's licence number in VARA's public register, as shown in the VARA licence verification guide.
Why it matters when selling USDT in the UAE
Selling USDT to a broker-dealer means trading with the dealer leg: one price quoted as principal, no order book to walk, no partial fills, and settlement to a bank account in your own name. That is what an OTC desk is in regulatory terms. The cost is the spread, published in the pricing section at 0.08% to 0.40% by ticket size, as of September 2026.
Illustrative example
A client sells 750,000 USDT in September 2026. The desk, as dealer, quotes the peg minus a 0.18% spread in writing: gross 750,000 × 3.6725 = AED 2,754,375, cost AED 4,958, net AED 2,749,417, wired the same business day. The full sequence is in how to sell USDT in Dubai.
FAQ
Is a broker-dealer the same as an OTC desk?
In crypto terms, yes: a licensed OTC desk operates under a Broker-Dealer licence, trading as principal off the public order book. OTC describes where the trade happens; broker-dealer is the legal activity behind it.
Can a broker-dealer hold my crypto for me?
Not under a Broker-Dealer licence alone: safekeeping client assets is Custody, a separate VARA activity. A pure broker-dealer settles each trade — you send the USDT, the desk wires dirhams to your own bank account.
Is a broker-dealer licence the same as an exchange licence?
No. Exchange Services means operating a facility that matches third-party orders; Broker-Dealer Services means dealing as principal or arranging client orders. They are separate VARA activities, licensed individually.
How do I check that a Dubai broker-dealer is licensed?
Ask for the licence number and search VARA's public register on vara.ae; the entry must name Broker-Dealer Services among the licensed activities. IWGT's licence is VL/24/12/002.
Sell USDT through a licensed broker-dealer
IWGT is a VARA-licensed Broker-Dealer in Dubai (VL/24/12/002). All-in spread 0.08–0.40% by size, published openly. AED by UAEFTS the same business day once your account is approved.
SOURCES
- VARA — Virtual Assets and Related Activities Regulations 2023 and activity rulebooks (Schedule 1: Broker-Dealer Services), accessed 11 September 2026.
- VARA public register — licence status check, accessed 11 September 2026.
- IWGT published pricing bands — IWGT published pricing bands, September 2026.
This guide is informational and is not legal, tax or investment advice, nor an invitation to buy or sell any virtual asset. Rules and figures are as of September 2026 — re-check the sources before acting. Virtual assets may lose their value in full or in part and are subject to extreme volatility.