UAE Unifies Crypto Regulation via VARA and SCA Partnership

Dubai, United Arab Emirates, has taken a major step in unifying its cryptocurrency regulatory framework through a new partnership between the Dubai Virtual Assets Regulatory Authority (VARA) and the federal Securities and Commodities Authority (SCA). This collaboration aims to streamline licensing and regulatory procedures for digital asset businesses, allowing firms licensed by one authority to operate across the entire UAE without the need for additional approvals [1]. The initiative reflects a shared commitment to creating a cohesive and efficient regulatory environment for the fast-growing crypto sector.

Under the new arrangement, both regulators will recognize each other’s licenses and implement joint oversight protocols, including anti-money laundering (AML) and counter-terrorism financing checks, operational readiness assessments, and broader security measures [1]. This coordinated approach is intended to expand market access while preserving the UAE’s regulatory integrity. The partnership also includes plans for real-time data sharing and the creation of a national register of approved service providers, reinforcing transparency and accountability.

The collaboration is considered a turning point in the UAE’s digital asset strategy, with VARA CEO Matthew White and SCA official Waleed Al Awadhi emphasizing its significance in building long-term investor confidence and fostering a stable market environment [1]. By eliminating conflicting jurisdictional requirements, the partnership is expected to attract more international crypto firms and encourage domestic innovation. This move also aligns with the UAE’s broader economic goals, such as enhancing its position as a global hub for fintech and digital assets.

The unified regulatory approach builds on earlier agreements reached in 2024 but introduces clearer operational guidelines. It is part of a broader trend in the UAE, where financial institutions like RAKBANK have already begun offering digital asset services, such as dirham-based crypto trading via mobile apps, signaling the country's commitment to digital finance [3]. In real estate and other sectors, blockchain-based compliance and financial services are also gaining traction, further integrating digital assets into the national economy.

Although the current partnership is between VARA and the SCA, regulators in Abu Dhabi and other emirates are expected to join future coordination efforts, demonstrating the UAE’s ambition to present a unified stance in global crypto regulation. This collaborative model could influence future international standards and reinforce the UAE’s role in shaping the global crypto landscape, particularly in Asia.

The move also aligns with Dubai’s broader technological ambitions, including initiatives like the AI Accelerator, which supports the development of next-generation government services [6]. These efforts highlight Dubai’s strategic push toward digital transformation across multiple sectors, with finance at the forefront.

As the UAE continues to refine its regulatory framework for digital assets, the partnership between VARA and the SCA represents a significant milestone. It underscores the nation’s proactive approach to managing the risks and opportunities associated with emerging financial technologies, ensuring a balance between innovation and investor protection.

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Source:

[1] https://cryptorank.io/ru/news/feed/189cd-uae-crypto-sca-vara-agree-to-unified-licensing-framework

[2] https://www.agbi.com/topics/crypto/

[3] http://www.msn.com/en-us/money/other/rakbank-introduces-dirham-based-crypto-trading-via-app-joins-uae-s-fintech-push/ar-AA1JwrU3?apiversion=v2&batchservertelemetry=1&domshim=1&noservercache=1&noservertelemetry=1&renderwebcomponents=1&wcseo=1

[4] https://www.stalawfirm.com/en/blogs/view/designated-non-financial-businesses-and-professions-in-uae-real-estate-navigating-regulatory-compliance-and-unlocking-investment-potential.html

[5] https://www.chaincatcher.com/en/article/2196315

[6] https://www.emirates247.com/uae/dubai-s-ai-accelerator-calls-on-tech-innovators-to-engineer-future-of-government-services-2025-08-11-1.740552

[7] https://thearabianpost.com/uae-and-russia-strengthen-economic-partnership-with-new-agreement/