The post UAE’s Virtual Assets Hub: SCA and VARA Sign Agreement to Regulate VASPs appeared on BitcoinEthereumNews.com.

UAE regulators are advancing their commitment to developing a robust framework for virtual assets with a landmark cooperation agreement. This initiative aligns with global trends towards regulatory clarity for Virtual Asset Service Providers (VASPs), which is vital for attracting international investment. Maryam Buti Al Suwaidi, CEO of the SCA, emphasized the importance of collaboration in maintaining compliance with anti-money laundering regulations. This article discusses the implications of the UAE’s new cooperation agreement between leading regulatory bodies on the virtual assets sector and its potential impact on market stability. UAE Strengthens Position as a Global Virtual Assets Hub The recent signing of a cooperation agreement between the Securities and Commodities Authority (SCA) and the Virtual Assets Regulatory Authority (VARA) marks a significant step toward establishing the UAE as a prominent center for virtual assets. This strategic alliance aims to streamline operations for VASPs looking to engage in the Dubai market while ensuring that regulatory frameworks are adhered to. The accord was formalized by Maryam Buti Al Suwaidi and Matthew White, the respective heads of SCA and VARA, reflecting a united front in overseeing digital finance. Overview of Regulatory Requirements for Virtual Assets Providers The cooperation agreement requires VASPs targeting the Dubai market to obtain licensing from VARA, which subsequently authorizes their operations throughout the UAE via SCA approval. Conversely, operators aiming to establish themselves in other emirates must adhere to local laws by obtaining SCA licenses. This bifurcated licensing framework underscores the UAE’s intention to maintain robust regulatory practices while supporting innovation within the virtual assets landscape. Key Aspects of the Cooperation Agreement Among the agreement’s critical provisions is the functional mechanism for the mutual supervision of licensed VASPs. Furthermore, it places a strong emphasis on reporting responsibilities, enabling both regulators to share pertinent information seamlessly. The collaborative effort also includes…

---

Filed under: News - @ September 11, 2024 11:27 am