The partnership introduces several mechanisms aimed at building a coherent national approach to virtual asset regulation, including:
- A unified registration framework for VASPs
- Mutual license recognition between SCA and VARA
- Real-time data sharing and joint supervision protocols
- Cross-jurisdictional AML/CFT coordination
- Creation of a Legislative Review Committee to refine existing regulations
The newly formed committee—approved by the SCA—is tasked with working closely with VARA to continuously evaluate and adapt the UAE’s regulatory landscape in line with international best practices. This reflects both entities’ commitment to creating a globally competitive crypto governance model.
UAE Aims for Leadership in Global Crypto Regulation
Officials from both regulators hailed the partnership as a turning point in the UAE’s digital economy strategy.
Matthew White, CEO of VARA, described it as:
“A pivotal moment in our journey to future-proof the UAE’s digital economy.”
Waleed Al Awadhi, CEO of the SCA, emphasized the role of transparency and trust in attracting foreign investment and building a sustainable crypto ecosystem.
Beyond Dubai: A Broader Push for National Coordination
While the current agreement is between the SCA and VARA, it is part of a broader national initiative to improve coordination across regulatory entities. The VARA spokesperson confirmed ongoing dialogues with other regulators—including the Abu Dhabi Global Market (ADGM)—to promote cross-border cooperation, interoperability, and regulatory consistency.
“Future collaborations remain a strategic priority,” the spokesperson noted, signaling more integrated efforts on the horizon.
Conclusion
The SCA–VARA partnership marks a decisive shift in the UAE’s approach to digital asset regulation. By aligning frameworks, enhancing oversight, and streamlining licensing processes, the UAE is positioning itself as a global leader in crypto governance—offering clarity, efficiency, and innovation in one of the world’s most dynamic digital economies.
