The Securities and Commodities Authority (SCA) signed a cooperation agreement with Dubai’s Virtual Assets Regulatory Authority (VARA) where it was 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.

In addition 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.

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.

The agreement was signed by Her Excellency Dr. Maryam Buti Al Suwaidi, the SCA’s CEO, and Mr. Matthew White, VARA’s CEO, in the presence of senior officials from both organisations.

His Excellency Mohamed Ali Al Shorafa, the SCA’s Chairman stressed on the importance of cooperation between different regulatory authorities across the nation to attract global businesses and organizations to operate within its dynamic financial sectors, including that of virtual assets. He indicated that investing in virtual assets continues to see substantial interest and exponential growth, which required joint efforts to build unified and effective frameworks that promote sustainable development and bring stability to this vital sector.

HE Al Shorafa remarked that the cooperation agreement signed with Dubai’s VARA is aligned with the government’s directives to regulate the local virtual assets sector, control its activities, and enhance overall monitoring to protect investors. It also ensures 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.

For his part, His Excellency Helal Saeed Al Marri, Chairman of VARA’s Executive Board commented that this agreement underscores a joint national commitment to leveraging regulations as an enabler to secure business enablement within the Virtual Assets ecosystem, so that the global industry can sustainably evolve to becoming a cornerstone for the New Economy. Dubai’s 2033 Economic Agenda has outlined a defined roadmap to becoming the global hub for tomorrow’s Innovation economy – and such regulatory collaboration and clarity is foundational to assuring consumers, investors, and the international business community, of the UAE’s position as a world-leading hub for the Future of Finance.