Dubai’s VARA Aims to Facilitate Smaller Crypto Entities, Acknowledges Imperfections in Regulations

cryptonews.com:

Matthew White, CEO of Dubai’s Virtual Asset Regulatory Authority (VARA), expressed the watchdog’s commitment to easing the regulation burden for smaller crypto entities.

Speaking at a regulatory panel discussion during the Paris Blockchain Week, White acknowledged the imperfections in crypto regulations and emphasized the need for improvement.

White acknowledged the high costs associated with regulatory compliance, particularly for smaller crypto entities with limited resources. He emphasized the importance of finding solutions to address this issue.

To address these concerns, he stated VARA’s extensive engagement with industry stakeholders, including global players and government officials, to develop regulations that accommodate the diverse needs of the crypto community.

White proposed potential solutions, such as larger market participants hosting smaller ones to share compliance burdens. He stressed the importance of fostering innovation while ensuring regulatory compliance.

“We’re looking at structures whereby larger market participants host smaller ones, so the cost of compliance is borne by these larger players,” he explained.

This arrangement would allow smaller players to enter the regulated ecosystem without shouldering the same level of compliance costs as larger players.

The VARA CEO highlighted VARA’s primary objective, stating,

“What VAR aims to do is to… balance innovation with regulation; that is the end goal.” 

He stated that the crypto ecosystem in Dubai boasts nearly 2,000 web3 or crypto companies and the importance of not disrupting it with regulatory measures.  White outlined VARA’s inclusive approach to regulation, stating, “It’s not an exclusive [regulation]… anybody can be part of it.”