VARA demonstrates how regulators, market can work in tandem: VARA Vice Chair

cointelegraph.com:

The Virtual Assets Regulatory Authority [VARA] is one of the earliest world regulatory bodies to release comprehensive crypto assets regulations to promote crypto-related activities in Dubai. Established in March 2022, VARA was created to promote the Emirate as a regional and international hub for virtual assets and related services.

VARA released a comprehensive regulatory framework for virtual asset service providers (VASP) in February this year. The regulatory framework includes four compulsory rulebooks and activity-specific rulebooks for VASPs. These rules will govern VASPs operating within the Dubai region only. The VARA framework also includes a rulebook for marketing, advertising and promotions by VASPs.

Cointelegraph spoke to Deepa Raja Carbon, Managing Director and Vice Chair at VARA, to gain insight into regulatory bodies’ views on the nascent technology and critical challenges they faced while establishing the framework for the crypto assets. When enquired about VARA’s approach toward virtual assets and what made them successful compared to other global regulators, Raja said that VARA’s unique proposition lies in its agility and collaborative ethos and its ability to respond swiftly to market needs.

Raja explained that VARA follows the ethos underpinning a philosophy that seeks to “find the highest point of convergence as a universal threshold rather than a minimum standard baseline is what will ultimately elevate and scale the entire ecosystem.”

When asked about the key challenges faced by VARA while establishing these virtual asset frameworks, the vice chair noted that crafting guidelines for a nascent industry like virtual assets is undeniably challenging. She added that the regulatory body rigorously