The United Arab Emirates (UAE) has taken a major step toward establishing a nationally harmonized crypto regulatory framework. The Securities and Commodities Authority (SCA) and Dubai’s Virtual Assets Regulatory Authority (VARA) have announced a strategic partnership aimed at aligning crypto regulations across all emirates.
The agreement, which builds on a memorandum of understanding signed in 2024, introduces a joint regulatory mechanism to manage crypto licensing, compliance, and enforcement across jurisdictions.
“In essence, the 2024 MoU was a starting point. The current partnership is its formal and functional implementation,” said a VARA spokesperson.
Unified Framework, Shared Oversight
Key elements of the partnership include:
- A unified Virtual Asset Service Provider (VASP) registration system
- Mutual license recognition between Dubai and other emirates
- Real-time data sharing and joint supervision protocols
- Coordinated Anti-Money Laundering (AML) oversight
- Creation of a Legislative Review Committee to update crypto laws
“The mechanisms operationalize our shared vision to future-proof the UAE’s digital economy,” noted VARA CEO Matthew White, calling it a “pivotal moment” for the region.
A VARA representative clarified that mutual license recognition does not equate to automatic passporting. However, Dubai-based crypto firms will benefit from easier access to other emirates, enabling wider service coverage across the country.
Building Global Confidence in UAE Crypto Market
The SCA-led committee will now collaborate with VARA to refine regulatory frameworks, ensuring they align with international best practices and offer protection for both consumers and institutional investors.
“Transparency and trust are central to attracting investment,” said SCA CEO Waleed Al Awadhi, emphasizing the UAE’s long-term vision for becoming a global leader in crypto regulation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.