The Securities and Commodities Authority (SCA) of the UAE has entered into a strategic alliance with the Dubai Virtual Assets Regulatory Authority (VARA) to harmonize the regulatory frameworks governing virtual assets across the nation. This initiative is aimed at reducing redundancy and enhancing oversight.
The signed agreement establishes a coherent process for the registration of virtual asset service providers (VASPs), facilitating mutual license recognition and enhancing information exchange between the two regulatory bodies.
It also establishes collaborative oversight and operational synergies between the organizations.
This development follows extensive coordination between the two authorities and showcases the UAE’s commitment to creating a streamlined and globally trusted regulatory landscape for digital assets.
Formation of SCA Committee to Collaborate with VARA
In a related advancement, the SCA’s board has sanctioned the creation of a Coordinating Committee for Legislative Review. This committee will collaborate with VARA to evaluate and draft legislation that aligns with international standards.
The agreement also encompasses joint technical discussions, shared risk evaluations, especially concerning anti-money laundering and counter-terrorism financing, as well as collaboration through dedicated task forces.
Both regulatory bodies are working to align their systems to facilitate immediate information sharing and institutional integration.
The shared objective is to promote transparency, enhance market integrity, and stimulate innovation within the virtual asset sphere.
The regulators also aspire to strengthen international collaboration through active involvement in global forums, including the Financial Action Task Force (FATF).
Waleed Al Awadhi, CEO of the SCA, commented, “Our strategic partnership with VARA sets a global example for effective governance and sophisticated oversight, further cementing the UAE’s position as a leading international hub for digital assets. We are dedicated to spearheading this regulatory evolution through unparalleled standards in transparency and security.”
Matthew White, CEO of VARA, described the partnership as a crucial step towards “future-proofing” the UAE’s virtual asset ecosystem.
“By merging oversight and aligning supervisory frameworks with SCA, we are not just reducing regulatory duplication, but also establishing the foundation for a globally credible, secure, and innovation-centric ecosystem,” said White.
The agreement places the UAE on a path to strengthen its status as a competitive center for digital asset investment and regulation, both within the region and globally.