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Opinion by: Irina Heaver, crypto lawyer Any crypto entrepreneur trying to navigate the United Arab Emirates’ crypto ecosystem inevitably encounters the myriad acronyms used in the country’s legal landscape. From the SCA and VARA to the DMCC, ADGM and DFSA, what do these mysterious combinations of letters stand for, and how does one navigate this complex maze? Moreover, is this abundance of acronyms and jargon an efficient feature of a system that promotes itself as the number one global crypto hub? Does this complexity strengthen the ecosystem, or is it a fundamental flaw in this self-proclaimed global crypto hub? What do all these acronyms stand for? To make this more digestible, let’s divide the acronyms into three main categories: regulators, free zones and government initiatives. Regulators The UAE has multiple regulatory authorities, which may seem confusing at first, but this is not a bug. Instead, it is a feature that, if navigated correctly, can be highly advantageous. Let’s begin with the primary federal regulator, the SCA (formerly known as ESCA). SCA stands for the Securities and Commodities Authority, established in 2000. This authority regulates and supervises the UAE’s financial markets, including the DFM (Dubai Financial Market) and the ADX (Abu Dhabi Securities Exchange). It also oversees virtual assets and cryptocurrencies across the UAE, except for the financial-free zones and the emirate of Dubai. Another critical aspect of the crypto ecosystem — stablecoins — falls under the CBUAE’s (Central Bank of the UAE) jurisdiction, particularly stablecoins backed by dirhams. The CBUAE regulates payment token services and payment mechanisms in the UAE, encompassing fintech products. Next is the world’s first dedicated virtual asset regulator, VARA (Virtual Asset Regulatory Authority), established in 2022. VARA regulates virtual asset activities in Dubai, including all economic free zones, excluding the DIFC (Dubai International Financial Center). Two…

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Filed under: News - @ March 3, 2025 9:24 pm