The Dubai Virtual Assets Regulatory Authority (VARA) and the UAE’s Securities and Commodities Authority (SCA) are joining forces to unify their regulatory efforts and align policy frameworks within the virtual asset space.
Through enhanced collaboration between the two regulatory entities, the VARA and the SCA are aiming to significantly boost governance standards and enhance supervisory integration across the UAE. Efforts to enhance regulatory alignments in the UAE began recently, as the SCA and the VARA engaged in intensive coordination, resulting in a comprehensive regulatory framework agreement.
The new agreement looks to establish a foundation for more strategic regulatory cooperation between the two entities, encompassing supervision, oversight, information exchange, and mutual recognition of virtual asset service provider (VASP) licenses. It also defines a unified registration mechanism for VASPs across both jurisdictions, while outlining operational coordination principles based on mutual collaboration and effective oversight, reinforcing institutional integration and eliminating regulatory duplication.
“This partnership marks a pivotal moment in our journey to future-proof the UAE’s virtual asset economy,” explained Matthew White, CEO of VARA. “By unifying oversight and aligning supervisory frameworks with SCA, we are not only minimising regulatory duplication, but also laying the groundwork for a globally credible, secure, and innovation-first ecosystem. Together, we are setting a new bar for regulatory cooperation that protects market integrity while empowering responsible growth across the entire value chain.”
In parallel, the SCA Board of Directors approved the formation of the Coordinating Committee for Legislative Review, chaired by the SCA. Through this committee, coordination with VARA will focus on the evaluation and refinement of virtual asset-related legislation under development by the SCA, in addition to proposing new legislative initiatives aligned with international best practices, ensuring a responsive and globally competitive regulatory framework.
Big boost for digital asset regulation
The collaboration between SCA and VARA will serve as a model of advanced strategic coordination, reinforcing the UAE’s commitment to developing a unified and effective supervisory regime for virtual assets.
The regulators say that this regulatory collaboration is further powered by shared systems, real-time information exchange, and mechanisms that ensure transparency and regulatory coherence across all relevant authorities. The partnership also includes joint efforts to build institutional capabilities and deepen international cooperation through active participation in the Financial Action Task Force (FATF) and relevant regional bodies, reaffirming the UAE’s position as a global frontrunner in regulatory excellence.
Waleed Al Awadhi, CEO of the SCA, also commented: “Investor protection and trust-building are not just strategic imperatives, they are the cornerstone of a globally competitive and sustainable economy. Our strategic partnership with VARA represents a global benchmark in effective governance and advanced oversight, further reinforcing the UAE’s status as a premier international hub for digital assets. We are committed to leading this regulatory transformation by achieving exceptional standards in transparency and security, fostering a trusted investment environment that rivals the world’s top markets and fuels boundless innovation.”
With this institutional alignment and shared vision, the UAE confidently advances its leadership in virtual asset sector, enhancing competitiveness through the adoption of global best practices and delivering a secure, attractive investment environment that reinforces its position as a leading regional and global investment destination.
