Dubai's Virtual Assets Regulator Aims to Ease Compliance Costs for Small Crypto Firms

Dubai's Virtual Assets Regulatory Authority (VARA) is actively exploring strategies to reduce compliance costs for small-scale crypto firms operating within the emirate. Matthew White, CEO of VARA, expressed the regulator's commitment to making regulatory requirements more accessible for all entities, particularly smaller players in the crypto space. Dubai introduced its regulatory framework for cryptocurrencies in the previous year, receiving a generally positive response from the industry. However, concerns were raised regarding the potentially high compliance expenses associated with the new rules. VARA's mandate involves overseeing digital asset activities in Dubai, one of the seven emirates comprising the United Arab Emirates (UAE). Notably, the regulatory guidelines stipulate that firms must obtain authorization to operate within the country. Several prominent crypto entities, including Crypto.com, Deribit's Dubai-based unit, and Nine Blocks, have already obtained licences in compliance with these regulations. White emphasised the importance of addressing the disparity in resources among market participants, highlighting potential structures that could facilitate larger firms supporting smaller ones in meeting regulatory requirements.