Dubai and UAE Team Up to Streamline Crypto Rules Under New Agreement
The United Arab Emirates is moving closer to a unified approach to crypto regulation.
In a new partnership announced Wednesday, the Dubai Virtual Assets Regulatory Authority (VARA) and the country’s Securities and Commodities Authority (SCA) confirmed they are working together to align their crypto regulatory frameworks. The agreement is aimed at creating a more consistent and efficient system for overseeing virtual asset service providers (VASPs) across the country.
A key part of the partnership is mutual recognition of licenses, meaning a crypto company licensed in Dubai could be recognized across the UAE. However, VARA clarified that this does not mean automatic passporting — companies must still meet local regulatory requirements before expanding into other emirates.
“Licensing reciprocity is a feature, but not automatic passporting,” a VARA spokesperson told Cointelegraph. They explained that firms will need to go through coordination checks, including anti-money laundering (AML) assessments and operational reviews.
The spokesperson added that the partnership helps reduce regulatory duplication, lowers risks for businesses, and speeds up market entry. “It simplifies the process for VASPs and strengthens the UAE’s position as a credible, innovation-led jurisdiction,” they said.
To support the effort, the SCA has approved the formation of a Legislative Review Committee, which will work with VARA to refine regulations and ensure they align with global best practices. This includes sharing data in real time, joint supervision, and enhanced AML cooperation.
Leaders from both regulators called the partnership a milestone. VARA CEO Matthew White said it’s a “pivotal moment” for the UAE’s digital economy, while SCA CEO Waleed Al Awadhi emphasized the importance of transparency and trust in attracting investors.
Although the deal is between SCA and VARA, officials say it’s part of a wider national effort to improve regulatory coordination — with discussions ongoing between other key players like the Abu Dhabi Global Market (ADGM) and international stakeholders.
Featured image from: cointelegraph.com