Thomas Daniels
The United Arab Emirates has taken a decisive stride toward consolidating its digital asset oversight. The Securities and Commodities Authority (SCA) and the Dubai Virtual Assets Regulatory Authority (VARA) have formalized a partnership designed to harmonize the UAE’s cryptocurrency regulatory framework.
A VARA spokesperson clarified that this initiative enables mutual license recognition—but does not imply automatic passporting across emirates. Instead, Virtual Asset Service Providers (VASPs) licensed in Dubai will be acknowledged by the SCA, contingent upon AML/CFT evaluations, supervision alignment, and operational readiness.
The 2024 memorandum of understanding laid the conceptual groundwork; the current agreement brings that intent into operational reality. The result is a streamlined licensing process, minimizing duplicate approvals, lowering operational risk, and accelerating market entry—all while fortifying investor confidence in the UAE’s regulatory integrity.
Key components of the framework include real-time data exchange, mutual supervision protocols, joint enforcement, and the establishment of a Legislative Review Committee hosted by the SCA to evolve crypto legislation in line with global standards.
High-level officials affirmed the significance of the move. VARA chair Helal Saeed Al Marri described it as a landmark for regulatory cohesion; SCA leadership emphasized enhanced investor protection and market stability.
Although this partnership currently involves only the SCA and VARA, it aligns with broader aims to foster inter-emirate coordination. Ongoing dialogues are underway with authorities such as ADGM and other regulatory bodies to deepen cooperation and further unify the national approach.
