Free Newsletter
Get the hottest Fintech Middle East News once a month in your Inbox
The Securities and Commodities Authority (SCA) and Dubai’s Virtual Assets Regulatory Authority (VARA) have signed an agreement to enhance the UAE’s status as a global hub for virtual assets.
Key officials, including SCA Chairman Mohamed Ali Al Shorafa and VARA Chairman Helal Saeed Al Marri, attended the ceremony.
The agreement, signed by SCA CEO Dr. Maryam Buti Al Suwaidi and VARA CEO Matthew White, aims to attract global businesses by creating unified frameworks for the virtual assets sector. It ensures compliance with anti-money laundering regulations and boosts investor confidence.
VASPs operating in Dubai must obtain a license from VARA, while those in other Emirates need SCA licensing. The agreement also covers mutual supervision, penalties, information exchange, and employee training, aligning with Dubai’s 2033 Economic Agenda to position the UAE as a leading hub for the future of finance.
Under the agreement, the SCA and VARA will set forth rules and procedures for licensing and supervision virtual asset service providers (VASPs) and any related activities, services or associated transactions. This is subject to licensing in accordance with the provisions of Cabinet Decision No. 111 of 2022, and No. 112 of 2022 (Regulating Virtual Assets and Their Service Providers) and within the respective jurisdiction of both parties.
Licensing of VASPs
The two parties agreed that VASPs operating in/from Dubai, or wishing to service the emirate of Dubai require to obtain a license from VARA, and can be registered by default with the SCA to service the wider UAE. VASPs wishing to operate out of any other Emirates, must be licensed by the SCA to do so.
The agreement covers the mechanism for mutual supervision of VASPs, penalty and fine imposition, the exchange of information and statistics, as well as cooperation in employee training and qualification.
