- The VASPs operating in Dubai must secure a VARA license under the UAE’s new agreement.
- The agreement boosts oversight with shared supervision and penalties to enhance compliance.
The United Arab Emirates (UAE) has taken a significant step towards solidifying its position as a global leader in virtual assets. A new cooperation agreement between the Securities and Commodities Authority (SCA) and Dubai’s Virtual Assets Regulatory Authority (VARA).
The agreement was signed in September 2024 at the SCA’s Dubai branch. The signing ceremony was attended by SCA Chairman Mohamed Ali Al Shorafa and VARA Chairman Helal Saeed Al Marri. Maryam Buti Al Suwaidi, CEO of the SCA, and Matthew White, CEO of VARA, were also present to formalize the partnership.
Under this agreement, VASPs looking to operate in or from Dubai must first obtain a license from VARA. Once licensed, they can then operate across the broader UAE under the supervision of the SCA. However, VASPs operating out of other Emirates will need direct licensing from the SCA.
The agreement also includes mutual supervision of VASPs, covering aspects such as information exchange, penalty enforcement, and employee training. This framework is designed to ensure compliance with local anti-money laundering regulations while fostering investor confidence.
UAE’s Regulatory Agreement A Key Step in Digital Finance Evolution
Mohamed Ali Al Shorafa emphasized the importance of cooperation between regulatory authorities, stating that unified frameworks will promote sustainable growth and stability in the virtual assets sector. He highlighted the need for effective regulation to support the UAE’s financial ecosystem.
Helal Al Marri underscored that this partnership aligns with Dubai’s 2033 Economic Agenda, and envisions UAE as a global hub for innovation. He noted that regulatory alignment between SCA and VARA is essential for building investor trust and positioning the UAE as a leader in the digital economy.
This agreement marks a crucial milestone in the UAE’s efforts to become a global hub for virtual assets. As UAE, continues to attract global crypto businesses, its role in the future of digital finance is to grow further.
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