UAE Aligns Crypto Regulations as SCA and VARA Launch Unified Virtual Asset Framework
The UAE has taken a major step toward unified crypto regulation as the Securities and Commodities Authority (SCA) and Dubai’s Virtual Assets Regulatory Authority (VARA) announce a strategic partnership to create a streamlined and globally competitive regulatory framework for virtual assets.
This groundbreaking collaboration aims to harmonize policies, enhance supervisory oversight, and eliminate regulatory duplication across the country’s crypto and blockchain ecosystem—signaling a unified national approach to digital asset governance.
Unified Framework for Crypto Regulation in the UAE
Following extensive coordination, SCA and VARA have signed a comprehensive regulatory framework agreement that covers joint supervision, information sharing, mutual recognition of virtual asset service provider (VASP) licenses, and a unified VASP registration process across both jurisdictions. The agreement establishes clear principles for operational coordination, institutional integration, and effective oversight of the growing virtual asset market in the UAE.
Formation of Coordinating Committee for Crypto Legislation
The SCA Board of Directors has also approved the formation of a Coordinating Committee for Legislative Review, chaired by the SCA. The committee will work closely with VARA to evaluate and refine draft legislation related to virtual assets and propose new laws that align with international standards and best practices—ensuring the UAE remains a forward-thinking and responsive crypto regulator.
Elevating Regulatory Standards Through Collaboration
The strategic alignment includes the exchange of expertise, the signing of memoranda of understanding (MoUs), and the creation of joint regulatory task forces focused on areas such as anti-money laundering (AML) and counter-terrorism financing (CTF). These joint efforts aim to standardize risk assessments and ensure regulatory clarity, transparency, and trust for both investors and industry participants.
Real-time data sharing, joint systems, and synchronized oversight mechanisms will allow for greater institutional efficiency and cross-border cooperation. The partnership also commits to building internal capabilities and strengthening the UAE’s role in global regulatory dialogues, including active participation in the Financial Action Task Force (FATF) and other regional forums.
Leadership Endorsements Reinforce UAE’s Regulatory Vision
H.E. Waleed Al Awadhi, CEO of the SCA, emphasized: “Investor protection and trust-building are critical to creating a globally competitive and sustainable economy. This partnership with VARA sets a new global benchmark in digital asset regulation, advancing transparency, innovation, and security across the UAE’s financial landscape.”
Mr. Matthew White, CEO of VARA, added: “By aligning with SCA, we are future-proofing the UAE’s virtual asset economy. This joint regulatory model reduces duplication and establishes a secure, innovation-driven environment that enhances market integrity and global trust.”
UAE’s Global Vision for Virtual Assets
With this strategic alignment, the UAE reinforces its leadership in the digital asset space, promoting a regulatory environment that supports crypto innovation, ensures investor protection, and attracts global investment. This partnership solidifies the UAE’s reputation as a top-tier hub for blockchain, crypto, and virtual assets in both the MENA region and globally.
