- Unified Supervision of Crypto Services
- Statements from SCA and VARA Officials
- Cryptocurrencies in UAE Legal System
The UAE's federal financial agency and Dubai's crypto regulator have signed an agreement aimed at simplifying the licensing process for virtual asset service providers (VASPs). The agreement allows for mutual supervision and controls licensing across the country.
Unified Supervision of Crypto Services
The Securities and Commodities Authority (SCA) and Dubai’s Virtual Assets Regulatory Authority (VARA) have signed an agreement for the mutual supervision of virtual asset service providers (VASPs) in the country. VASPs operating in Dubai that wish to obtain a license from VARA “can be registered by default with the SCA to service the wider UAE.” However, to operate in other emirates, VASPs must still obtain a license from local regulators.
Statements from SCA and VARA Officials
His Excellency Helal Saeed Al Marri, chairman of VARA’s executive board, noted that the collaboration with SCA allows for “efficient passportability of regulated services,” ensuring market risk control across the country.
Cryptocurrencies in UAE Legal System
In addition to the regulators' efforts, UAE courts are also moving toward the integration of cryptocurrencies. On August 16, 2024, lawyer Irina Heaver reported that the Dubai Court of First Instance recognized cryptocurrency as a valid form of payment under employment contracts, setting a precedent for the integration of digital currencies in financial transactions. According to a study by Henley & Partners, the UAE ranks third globally in crypto adoption, surpassing countries like the United States.
The agreement between SCA and VARA plays a crucial role in strengthening the UAE's position as a global leader in cryptocurrency, contributing to the creation of a unified, reliable, and secure virtual asset ecosystem.
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