United Arab Emirates (UAE) regulators, the Securities and Commodities Authority (SCA) and the Virtual Assets Regulatory Authority (VARA), have signed a cooperation agreement aimed at reinforcing the country’s position as a leading hub for virtual assets.
The agreement, signed by SCA Chief Executive Maryam Buti Al Suwaidi and VARA Chairman Matthew White, establishes licensing requirements for virtual asset service providers (VASPs) and mutual supervision mechanisms to promote a stable and regulated virtual assets sector in the UAE.
The cooperation agreement mandates that VASPs operating in or targeting the Dubai market must obtain a license from VARA. Once licensed, these providers will be authorized to operate throughout the UAE under the supervision of the SCA. VASPs looking to operate from other emirates will need to secure licensing directly from the SCA.
Key elements of the agreement include provisions for mutual supervision of VASPs, the imposition of penalties and fines, the exchange of information and statistics, and collaboration in employee training and qualification.
During the signing ceremony, SCA Chairman Mohamed Ali Al Shorafa emphasized the importance of establishing effective frameworks in partnership with regulatory bodies to foster the growth and stability of the virtual assets sector. He noted that this collaboration aims to ensure compliance with anti-money laundering legislation and bolster confidence in the UAE’s investment ecosystem.
VARA Chairman Helal Al Marri described the agreement as a significant milestone that demonstrates regulatory cohesion across the UAE. He highlighted that the collaboration between federal partners like the SCA allows for the efficient portability of regulated services while maintaining market risk assurance throughout the country.
The agreement also outlines the rules and procedures for licensing and supervising VASPs and related activities, aligning with Cabinet Decisions No. 111 and No. 112 of 2022, which regulate virtual assets and their service providers.
