The United Arab Emirates (UAE) has taken an important step towards coordinating its approach to crypto-regulation. The country’s Securities and Commodity Authority (SCA) and Dubai Virtual Assets Regulatory Authority (VARA) have announced strategic partnerships to unify the UAE’s approach to crypto regulations.
Last September, regulators Express their intentions Work together to unify the country’s crypto framework. According to a Wednesday announcement from Cointelegraph, one feature of the partnership is that it will allow Dubai-based licenses to serve the entire UAE.
A VARA spokesman told Cointelegraph that the latest development formalizes the agreement between the two regulators and the “intentional operation” of specific mechanisms.
“Essentially, the 2024 MoU is a starting point. The current partnership is its formal and functional implementation,” Walla said.
License reciprocity, not automatic passport
Although the agreement establishes a mechanism for mutual recognition of licenses between SCA and VARA, it does not provide an automatic “passport” license in jurisdictions.
“Permission reciprocity is a key feature of a partnership, but not an automatic passport,” a spokesperson said.
The spokesperson clarified that the agreement established a mutual identification mechanism between SCA and VARA.
This means that a VAP licensed by one institution can be recognized by another authoritatively. However, they will be subject to coordinated programs and applicable regulatory inspections.
“This includes AML/CFT assessment, operational preparation and supervision consistency to ensure national security and compliance standards remain strong,” a spokesperson told Cointelegraph.
For VASPs operating in the UAE and want to operate, the partnership provides regulatory clarity, reducing duplication and simplifying national coverage.
A VARA spokesman said this does not require navigation of a “separate, potentially conflicting” approval process, which “reduces operational risks and increases market speed.”
“This also enhances the UAE’s global appeal with a reliable innovation priority jurisdiction and adopts a unified approach to virtual asset oversight,” the spokesperson added.
SCA Form Committee Improves Regulations
These mechanisms include a unified Virtual Asset Service Provider (VASP) registration framework, co-license identification, real-time data sharing and joint supervision protocols, cross-judicial anti-money laundering (AML) coordination, and the establishment of a legislative review committee.
The SCA approved the formation of the committee, which was appointed to work with VARA to consistently evaluate and refine the country’s crypto regulations in accordance with international best practices. This shows that both sides are committed to establishing a globally competitive regulatory environment.
Officials from both regulators described the partnership as an important step in positioning the UAE as a leader in crypto governance.
Vara CEO Matthew White calls the partnership a “critical moment” on his journey forward in the UAE’s digital economy. Meanwhile, SCA CEO Waleed Al Awadhi said transparency and trust are at the heart of attracting investment.
Related: Rakbank becomes the first bank to offer retail cryptocurrency transactions
Broader efforts to enhance regulatory coordination
Although recent developments are a bilateral agreement between SCA and VARA, a spokesperson told Cointelegraph that it is part of a broader effort to improve national regulatory coordination.
Wala said there was ongoing dialogue between other regulators, including Abu Dhabi Global Market (ADGM) and local and international stakeholders to promote interoperability, monitoring consistency and cross-border cooperation.
The spokesperson added: “Future cooperation remains a strategic priority.”
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