UAE regulators SCA and VARA enhance crypto regulations, offering unified licensing for VASPs, boosting market confidence and crypto adoption.
2 min read
The United Arab Emirates (UAE) is making significant strides in solidifying its position as a leading hub for virtual assets by establishing a unified regulatory framework for crypto service providers. A recent cooperation agreement between the UAE’s Securities and Commodities Authority (SCA) and the Virtual Assets Regulatory Authority (VARA) is set to streamline the licensing of Virtual Asset Service Providers (VASPs), ensuring consistency across the entire nation.
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VASPs that operate under a license from Dubai’s VARA can now service the entire UAE through automatic registration with the SCA, with the exception of other emirates, where a separate SCA license is still required. This agreement not only simplifies the licensing process but also introduces mechanisms for joint supervision, penalty enforcement, information sharing, and employee training between the two regulatory bodies.
His Excellency Helal Saeed Al Marri, chairman of VARA, emphasized the significance of this collaboration, highlighting its role in fostering regulatory harmony and ensuring market stability. This unified effort aims to enhance investor confidence in the UAE’s growing virtual assets sector while supporting compliance with anti-money laundering (AML) laws.
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The SCA’s chairman, Mohamed Ali Al Shorafa, echoed these sentiments, stating that the agreement serves to support the sustainable growth of the crypto industry while ensuring the UAE remains at the forefront of global crypto adoption. Recent studies have positioned the UAE as one of the world’s top three leaders in cryptocurrency adoption, reflecting the country’s crypto-friendly stance.
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This regulatory alignment represents a critical milestone in the UAE’s efforts to build a secure, interoperable, and innovative virtual assets ecosystem, reinforcing the nation’s reputation as a forward-thinking crypto hub.
Michael has been a vital voice in crypto security, focusing on blockchain vulnerabilities and emerging technologies. With a background in cybersecurity and fintech, he ensures our readers stay informed on safeguarding their assets while exploring new opportunities in the crypto space.
