The Securities and Commodities Authority (SCA) and Dubai’s Virtual Assets Regulatory Authority (VARA) announced a formal partnership to harmonize the UAE’s approach to virtual asset regulation.
This step introduces a shared framework for licensing, information sharing, and supervisory coordination, aiming to strengthen regulatory clarity nationwide.
Dubai-based VASPs will be able to register through VARA and, through mutual recognition, gain coverage across the broader UAE. That said, the arrangement does not constitute automatic license passporting—licensing reciprocity depends on compliance with applicable frameworks and operational checks.
The agreement delivers a unified registration system for virtual asset service providers (VASPs). It reduces bureaucratic overlap by enabling Dubai-licensed providers to be recognized by the SCA. Providers operating outside Dubai remain subject to direct SCA licensing requirements.
Shared supervision is central to this effort. SCA and VARA will now conduct joint oversight, jointly impose penalties, exchange real-time information, and coordinate staff training. These mechanisms aim to bolster consistency across emirates.
To align regulatory standards with global norms, the SCA board has launched a Coordinating Committee for Legislative Review. This body is tasked with collaborating with VARA to review existing regulations and propose updates aligned with FATF best practices.
This combined oversight and legislative strategy reflects ongoing efforts to foster a secure and credible regulatory environment for virtual assets in the UAE.
Related: CFTC spot crypto trading gets federal approval
Official Reactions
Waleed Al Awadhi, CEO of SCA, emphasized transparency and trust as pillars of the agreement, aimed at attracting investment through stronger governance.
Matthew White, CEO of VARA, described the partnership as laying a foundation for a credible and innovation-driven virtual assets ecosystem in the UAE.
Helal Saeed Al Marri, Chair of VARA, called the collaboration a significant milestone, while Mohamed Ali Al Shorafa, SCA’s Chair, stressed the need for consistent enforcement of AML controls and investor protection.
What This Means for Crypto Stakeholders?
For VASPs and market participants, the framework offers a clearer licensing route, standardized rules across jurisdictions, and faster regulatory responsiveness. These measures aim to deepen market confidence and support innovation in the fast-evolving virtual asset space.
The unified approach also enhances the UAE’s standing as a global digital asset hub. Coordinated regulatory supervision, real-time collaboration, and a shared legislative roadmap signal commitment to sustainable industry governance.
