DFSA, VARA to strengthen Dubai’s financial and virtual asset regulation

DFSA regulates DIFC, while VARA oversees Dubai’s virtual assets sector outside the centre

Last updated: October 15, 2025 | 17:41

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DIFC has its own independent, internationally recognised regulator, the Dubai Financial Services Authority (DFSA).

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Dubai: The Dubai Financial Services Authority (DFSA) and the Virtual Assets Regulatory Authority (VARA) have signed a Memorandum of Understanding (MoU) to enhance regulatory cooperation, strengthen oversight, and support Dubai’s ambition to become a leading global centre for finance and digital assets.

The agreement, signed during GITEX Global 2025, establishes a framework for collaboration between the DFSA, which oversees the Dubai International Financial Centre (DIFC), and VARA, which regulates the virtual assets sector across the Emirate of Dubai, excluding the DIFC.

The MoU was formalised by Mark Steward, Chief Executive of the DFSA, and Matthew White, Chief Executive Officer of VARA.

Also Read: SCA and VARA partner to strengthen virtual asset rules, oversight in UAE

Regulatory frameworks

The MoU outlines joint efforts between the two regulators to:

Coordinate on licensing, supervision, and enforcement activities;
Enhance anti-money laundering (AML), terrorism financing, and proliferation financing controls; and
Facilitate the exchange of regulatory information to reinforce integrity, transparency, and market confidence.

By aligning their regulatory approaches, both authorities aim to build a robust and well-regulated virtual asset market, ensuring Dubai remains at the forefront of responsible financial innovation.

Unified regulatory vision

Mark Steward, Chief Executive of the DFSA, said the agreement formalises a framework for continuous collaboration.

“Regulatory cooperation is an important step forward, and this MoU will help the DFSA and VARA work together and share information on a formal basis to further develop the virtual asset sector in Dubai,” he said.

Matthew White, CEO of VARA, said the partnership reinforces Dubai’s commitment to regulatory clarity and innovation.

“Dubai’s strength lies in our ability to innovate through coordination, offering certainty for businesses, protection for investors, and swift remediation for market misconduct,” White said. “This MoU supports our goal of building a unified, high-integrity marketplace that sets global benchmarks for responsible innovation.”

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Economic, fintech growth

The signing comes as Dubai continues to strengthen its position as a top global financial and fintech hub. The city recently ranked 11th globally and fourth among fintech centres in the Global Financial Centres Index 38 (GFCI), published in September 2025.

The DFSA–VARA collaboration aligns with the Dubai Economic Agenda D33, which prioritises digital transformation and regulatory innovation as key drivers of sustainable growth.

By fostering closer regulatory alignment between financial and virtual asset markets, the agreement further cements Dubai’s role as a world-class centre for finance, technology, and responsible digital asset development.

Justin VargheseYour Money Editor

Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence. Before returning to his Middle Eastern roots, where he was born and raised, Justin worked as a Business Correspondent at Reuters, reporting on equities and economic trends across both the Middle East and Asia-Pacific regions.