The Securities and Commodities Authority (SCA) of the UAE, alongside the Dubai Virtual Assets Regulatory Authority (VARA), has established a strategic alliance to harmonize the regulatory structures for virtual assets nationwide. This initiative aims to eliminate redundancies and enhance oversight.
Through this agreement, a standardized mechanism for the registration of virtual asset service providers (VASPs) will be implemented. This will allow for mutual recognition of licenses and promote information sharing between both regulatory bodies.
Furthermore, the partnership includes collaborative oversight and coordinated operations.
This initiative follows several months of engagement between the two organizations and represents the UAE’s ongoing commitment to creating an efficient and globally respected regulatory framework for digital assets.
Formation of New SCA Committee to Collaborate with VARA
In a related development, the SCA’s board has sanctioned the creation of a Coordinating Committee for Legislative Review, which will collaborate with VARA to evaluate and formulate legislation that meets international benchmarks.
This partnership will also encompass joint technical discussions, shared risk assessments—particularly focused on anti-money laundering and counter-terrorism financing—and cooperation through joint task forces.
Both regulators are working to synchronize their systems, allowing for real-time information exchange and integration of their institutions.
The primary aim of this collaboration is to boost transparency, enhance market integrity, and spur innovation within the virtual asset sector.
Additionally, both entities are looking to strengthen international cooperation by actively engaging in global platforms, such as the Financial Action Task Force (FATF).
Waleed Al Awadhi, CEO of the SCA, remarked, “Our strategic alliance with VARA sets a global standard for effective governance and advanced oversight, further solidifying the UAE’s reputation as a leading international center for digital assets. We are dedicated to spearheading this regulatory evolution by establishing high standards of transparency and security.”
VARA CEO Matthew White described the partnership as a crucial move toward “future-proofing” the UAE’s virtual asset industry.
“By consolidating oversight and aligning our supervisory frameworks with SCA, we are effectively reducing regulatory overlap while paving the way for a globally credible, secure, and innovation-driven ecosystem,” White explained.
This agreement strategically positions the UAE to strengthen its role as a competitive hub for digital asset regulation and investment, both regionally and internationally.