UAE Digital Asset Regulation: The Global Benchmark?

This was the central theme of a closed-door roundtable hosted before the TOP 20 Performing CEO event in Dubai on April 29th. Held under Chatham House rules, the gathering brought together a cross-section of participants from the banking sector, stablecoin issuers, tokenization firms, legal experts, and licensed crypto exchanges. While discussions covered a range of topics from regulatory frameworks to stablecoins, real-world asset tokenization, and trade finance, a key question emerged: As the United States awakens to digital assets with renewed bipartisan political support, is the UAE ready to solidify its position as a global hub—or will it face stronger competition?

Many participants agreed that the UAE’s regulatory clarity remains one of its biggest strengths. Jurisdictions like VARA in Dubai and ADGM in Abu Dhabi were repeatedly credited for offering structure, licensing frameworks, and openness that attracted a wave of digital asset firms over the past two years. Several attendees emphasized that the UAE offers something the U.S. cannot: long-term regulatory continuity and vision.

But with the U.S. now introducing bipartisan support for crypto bills and seeing improved sentiment among institutional players, some roundtable attendees noted that companies originally planning to migrate from the U.S. to the UAE have paused, waiting to see how things play out post-election.

Despite that, most did not perceive the U.S. resurgence as a direct threat. One participant described the UAE as "effectively the capital of the rest of the world," tying the comment to the earlier discussion that, while the UAE may be a small market in terms of population, its ambition and infrastructure are clearly intended to serve a regional and international audience. pointing to the nation’s strategic location, connectivity to Asia, Africa, and Europe, and business-friendly environment.

While some raised concerns about the UAE’s relatively small domestic market—roughly 8 million people—the discussion quickly shifted. Participants agreed that the UAE was never meant to cater only to its internal population. Instead, its regulatory frameworks and digital asset infrastructure are designed to serve regional and international players, positioning the country as a base for global expansion.

VARA as a Benchmark for Complex Regulation

As the UAE welcomes more Virtual Asset Service Providers (VASPs), questions surfaced around whether UAE-based firms will eventually need to enter U.S. markets to scale. One example referenced was a UAE-based publicly listed mining company considering a dual listing in the U.S. due to increased institutional demand and industry visibility on Wall Street. However, participants argued that entities operating under a VARA license should be considered well-positioned to navigate complex jurisdictions globally, suggesting VARA could serve as a regulatory benchmark.

Some professionals noted that VARA's licensing process—which demands clarity in business models, compliance structures, and token issuance—is already stringent. If globally recognized, such a benchmark could help fast-track UAE-based VASPs into new markets, particularly if regulatory passporting or mutual recognition agreements were to be explored.

Stablecoins: It’s All About the Experience

Stablecoins dominated much of the conversation. With multiple UAE-regulated stablecoins on the verge of launching—including the recently licensed AEcoin—participants debated what will define success. While technical stability and regulatory compliance are critical, it’s the end-user experience that will determine which stablecoins thrive.

The user experience isn’t just about seamless payments. Participants shared multiple use cases: using stablecoins for cross-border supplier payments, paying salaries, funding trade finance operations, and enabling merchant transactions. These use cases are made possible through ecosystem partnerships—with banks, fintech platforms, and point-of-sale (POS) providers—that collectively ensure a smooth and accessible user experience across both consumer and enterprise layers. paying salaries, or funding treasuries during trade finance gaps. One banker highlighted a three-phase rollout strategy: starting with conversion rails and merchant settlement, followed by payroll integration, and ultimately enabling tokenized trade finance through digitally native instruments.

What emerged clearly was that stablecoin adoption will hinge on strategic partnerships—with banks, fintech platforms, and point-of-sale providers—to ensure usability in both retail and business settings. Many participants emphasized that the most successful projects will be those designed with user needs at the center, backed by meaningful collaborations that enhance daily utility.