Major move: SCA, VARA agree on unified framework to regulate virtual assets in UAE

Dubai: In a milestone move, the UAE is moving to unify its regulatory approach to the virtual asset sector under a new agreement between the Securities and Commodities Authority (SCA) and Dubai’s Virtual Assets Regulatory Authority (VARA).

The deal introduces a shared framework for licensing, supervision, and legislative coordination across the country. This marks a significant step in building a nationwide regulatory structure for digital assets, aiming to reduce duplication and ensure consistency in rules and oversight across different emirates.

The agreement, finalised after extensive coordination, sets out a joint mechanism for licensing and supervising Virtual Asset Service Providers (VASPs) operating in the UAE. It includes mutual recognition of VASP licenses issued in Dubai and the rest of the UAE, as well as joint processes for reviewing applications and monitoring compliance.

Authorities also agreed to share information in real-time and coordinate inspections, oversight, and enforcement actions.

To support the new regulatory model, the SCA Board of Directors has formed a Coordinating Committee for Legislative Review, chaired by the SCA. The committee will work closely with VARA to review and refine existing virtual asset legislation and propose new laws aligned with international standards, such as those promoted by the Financial Action Task Force (FATF).

This collaboration aims to make the UAE’s legal environment for virtual assets more responsive, secure, and globally competitive, as the sector continues to evolve rapidly.

By merging efforts, the SCA and VARA aim to eliminate regulatory gaps and overlaps that could affect investors and companies. The partnership also enables shared risk assessments, especially in areas such as anti-money laundering (AML) and counter-terrorism financing (CTF).

Coordination will be supported through joint task forces, regular consultations, and a shared digital infrastructure for regulatory processes.

For companies and investors in the UAE’s crypto and digital asset space, the agreement offers:

This move is expected to support responsible innovation, investor protection, and overall market confidence in the UAE’s growing virtual asset sector.