Furthering the aspirations to unify virtual asset policy frameworks, the UAE virtual asset regulatory authorities including the Securities and Commodities Authority (SCA) and the Dubai Virtual Assets Regulatory Authority (VARA) have announced the launch of a comprehensive strategic regulatory partnership.
This initiative aims to unify efforts and harmonize policy frameworks within the virtual asset space to elevate governance standards and enhance supervisory integration across the nation.
The announcement comes after both parties increased their coordination efforts which now culminates into the signing of a regulatory framework agreement that will establish the foundation for strategic regulatory cooperation between the two entities, encompassing supervision, oversight, information exchange, and mutual recognition of virtual asset service provider (VASP) licenses.
It also defines a unified registration mechanism for VASPs across both jurisdictions and outlines operational coordination principles based on mutual collaboration and effective oversight, reinforcing institutional integration and eliminating regulatory duplication.
In parallel, the SCA Board of Directors approved the formation of the Coordinating Committee for Legislative Review, chaired by the SCA. Through this committee, coordination with VARA will focus on the evaluation and refinement of virtual asset-related legislation under development by the SCA, in addition to proposing new legislative initiatives aligned with international best practices, ensuring a responsive and globally competitive regulatory framework.
This regulatory synergy is further powered by shared systems, real-time information exchange, and mechanisms that ensure transparency and regulatory coherence across all relevant authorities.
The partnership also includes joint efforts to build institutional capabilities and deepen international cooperation through active participation in the Financial Action Task Force (FATF) and relevant regional bodies, reaffirming the UAE’s position as a global frontrunner in regulatory excellence.
H.E. Waleed Al Awadhi, CEO of the SCA, stated, “Investor protection and trust-building are not just strategic imperatives, they are the cornerstone of a globally competitive and sustainable economy. Our strategic partnership with VARA represents a global benchmark in effective governance and advanced oversight, further reinforcing the UAE’s status as a premier international hub for digital assets. We are committed to leading this regulatory transformation by achieving exceptional standards in transparency and security, fostering a trusted investment environment that rivals the world’s top markets and fuels boundless innovation.”
For his part, Matthew White, CEO of VARA, commented, “This partnership marks a pivotal moment in our journey to future-proof the UAE’s virtual asset economy. By unifying oversight and aligning supervisory frameworks with SCA, we are not only minimising regulatory duplication, but also laying the groundwork for a globally credible, secure, and innovation-first ecosystem. Together, we are setting a new bar for regulatory cooperation that protects market integrity while empowering responsible growth across the entire value chain.”
The cooperation began in September 2024
Back in September 2024, SCA UAE and VARA announced that they had signed an agreement to cooperate, stressing the importance of regulating the local virtual assets/ crypto sector and enhancing overall monitoring to protect investors. At the time the agreement also ensured compliance with local anti-money laundering regulations as well as those related to the financing of terrorism and illegal organizations, which boosts investor confidence in the UAE and its resilience in the face of global challenges.
At the time, HE Mohamed Ali Al Shorafa SCA’s chairman noted, “We strive to establish effective frameworks in cooperation with our partners to foster the growth and stability of the virtual assets sector in the UAE, thus ensuring the enforcement of anti-money laundering legislation and bolstering confidence in the UAE’s investment ecosystem.”
“Today marks a pivotal milestone, demonstrating regulatory cohesion across the UAE, driving forward our shared vision for a robust, secure and interoperable virtual assets ecosystem. The strength of our collaboration with federal partners like SCA, allows for seamless and efficient passportability of regulated services, while assuring uncompromised market risk assurance across the UAE. This reflects our collective commitment to enabling Responsible Innovation, upholding the highest standards in cross-border compliance and investor protection,” HE Helal Al Marri Chairman of VARA Dubai.
