UAE’s SCA and VARA Partner to Unify Crypto Rules, Paving Way for VASP Integration

The United Arab Emirates’ Securities and Commodities Authority (SCA) and Dubai’s Virtual Assets Regulatory Authority (VARA) have entered into a strategic partnership to unify crypto regulations across the country.

At the core of the agreement is a mutual recognition system for Virtual Asset Service Provider (VASP) licenses.

Under the new rules, Dubai-licensed VASPs will be allowed to operate in other parts of the UAE — including Abu Dhabi and Sharjah — provided they complete standard compliance checks such as anti-money laundering (AML) and counter-terrorism financing (CTF) assessments.

The move operationalizes a memorandum of understanding signed in 2024, delivering on earlier commitments to integrate federal and emirate-level virtual asset supervision.

A VARA spokesperson described the agreement as a “functional implementation” of prior intentions and noted the benefits of regulatory clarity for businesses.

VARA CEO Matthew White further emphasized the strategic importance of the partnership, calling it “a pivotal moment” in future-proofing the UAE’s digital economy, highlighting the country’s commitment to long-term regulatory vision.

However, firms will still be required to undergo case-by-case vetting, ensuring no automatic approval across jurisdictions.

VARA CEO Matthew White. Source: @varadubai

Legislative Committee to Align UAE Crypto Laws

A major feature of the partnership is the formation of a legislative committee tasked with harmonizing crypto regulations nationwide. This body will work to align UAE laws with global standards — including recommendations from the Financial Action Task Force (FATF) — while ensuring consistency across regulatory agencies and emirates.

SCA CEO Waleed Al Awadhi underscored the economic intent behind the collaboration, stating that “transparency and trust are central to attracting investment,” reinforcing the UAE’s ambition to provide a stable and credible regulatory landscape for virtual assets.

The initiative builds on the UAE’s investor-friendly economic policies: 0% personal income tax, a 9% corporate tax rate, and over 140 double taxation avoidance agreements.

These advantages have already drawn several international crypto firms to the region, and the new framework is expected to further boost confidence among VASPs, institutional players, and venture capital groups.