The UAE has forged a significant partnership between the Securities and Commodities Authority (SCA) and the Dubai Virtual Assets Regulatory Authority (VARA) to unify the regulation of virtual assets across the nation.

This collaboration allows crypto licenses issued in Dubai to operate throughout the UAE, provided they meet necessary compliance checks.

The agreement aims to provide companies and investors with a clearer licensing path, unified rules, and faster regulatory responses, ultimately enhancing transparency and boosting confidence in the UAE's virtual asset market.

A key objective of this partnership is to deepen international cooperation and participation in global forums, such as the Financial Action Task Force (FATF).

The partnership features mutual recognition of licenses and improved information exchange between the SCA and VARA, streamlining regulatory processes.

Designed to reduce operational risks, the collaboration also aims to improve the speed to market for Virtual Asset Service Providers (VASPs).

Joint technical consultations and shared risk assessments are integral to the partnership, focusing on anti-money laundering and counter-terrorism financing initiatives.

Both regulators are committed to enhancing transparency and market integrity while fostering innovation within the virtual asset ecosystem.

Following a joint declaration from September 2023, a Legislative Review Committee has been established to refine existing laws and develop new legislation in line with international standards.

This collaboration seeks to eliminate regulatory gaps and overlaps, thereby enhancing investor trust and security within the virtual asset sector.

While the agreement includes mechanisms for mutual recognition of licenses, it does not allow for automatic passporting of licenses across jurisdictions.

SCA CEO Waleed Al Awadhi highlighted the partnership as a benchmark for governance and oversight, reinforcing the UAE's status as a hub for digital assets.