VARA’s New Leadership in Dubai Marks Next Phase of Crypto Regulation
The hands-on approach by Dubai’s Virtual Asset Regulatory Authority (VARA) has enabled it to set a global precedent for regulator-industry cooperation, its executives said.
All virtual asset service providers (VASPs) must obtain a license from VARA before offering their services in the UAE emirate.
VARA’s managing director and vice chair Deepa Raja Carbon discussed what the regulator focuses on while crafting crypto-related regulation.
First, it never differentiates for the “sake of distinction but by a steadfast commitment to harmonization and interoperability within the international regulatory landscape,” Raja Carbon told Cointelegraph.
The vice chair argued that VARA has set a precedent, showing how the world’s regulators and stakeholders can cooperate. She said,
“Our approach has been inherently consultative and collaborative. We engaged with a diverse array of stakeholders — from industry leaders to innovators, peer regulators to legislators, investors to the public.”
Another major focus is on outlining a comprehensive regulatory framework and rulebook aligned with global practices.
Per Raja Carbon, creating guidelines for a novel industry like cryptocurrencies is challenging. That said, VARA has explored existing frameworks and incorporated global practices.
Furthermore, the regulator is actively working with other entities in Dubai. These include the Department of Economy and Tourism and the Dubai Free Zones Council. Thanks to this, VARA has “crafted a unified and fungible framework.”
VARA is not an old regulator but is moving very fast. It was created in March 2022 to oversee crypto-related regulation and help develop Dubai’s Web3 ecosystem.
Already in February 2023, it published regulatory guidelines for VASPs.
Vanessa
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