SCA and VARA forge strategic alliance to shape UAE’s unified virtual asset regulations
In a bold move that underscores the UAE’s pioneering regulatory alignment, the Securities and Commodities Authority (SCA) and the Dubai Virtual Assets Regulatory Authority (VARA) have announced the launch of a comprehensive strategic regulatory partnership. This initiative aims to unify efforts and harmonize policy frameworks within the virtual asset space to elevate governance standards and enhance supervisory integration across the nation.
Recently, the SCA and the VARA have engaged in intensive coordination, culminating in the signing of a comprehensive regulatory framework agreement. This agreement establishes the foundation for strategic regulatory cooperation between the two entities, encompassing supervision, oversight, information exchange, and mutual recognition of virtual asset service provider (VASP) licenses. It also defines a unified registration mechanism for VASPs across both jurisdictions and outlines operational coordination principles based on mutual collaboration and effective oversight, reinforcing institutional integration and eliminating regulatory duplication.
In parallel, the SCA Board of Directors approved the formation of the Coordinating Committee for Legislative Review, chaired by the SCA. Through this committee, coordination with VARA will focus on the evaluation and refinement of virtual asset-related legislation under development by the SCA, in addition to proposing new legislative initiatives aligned with international best practices, ensuring a responsive and globally competitive regulatory framework.
The collaboration between SCA and VARA serves as a model of advanced strategic coordination, reinforcing the UAE’s commitment to developing a unified and effective supervisory regime for virtual assets. This is being implemented through knowledge exchange, adoption of memoranda of understanding, field-level regulatory coordination via joint task forces, and ongoing technical consultations to harmonize risk assessments, particularly in anti-money laundering and counter-terrorism financing.
This regulatory synergy is further powered by shared systems, real-time information exchange, and mechanisms that ensure transparency and regulatory coherence across all relevant authorities. The partnership also includes joint efforts to build institutional capabilities and deepen international cooperation through active participation in the Financial Action Task Force (FATF) and relevant regional bodies, reaffirming the UAE’s position as a global frontrunner in regulatory excellence.
Affirming this vision, H.E. Waleed Al Awadhi, CEO of the SCA, stated, “Investor protection and trust-building are not just strategic imperatives, they are the cornerstone of a globally competitive and sustainable economy. Our strategic partnership with VARA represents a global benchmark in effective governance and advanced oversight, further reinforcing the UAE’s status as a premier international hub for digital assets. We are committed to leading this regulatory transformation by achieving exceptional standards in transparency and security, fostering a trusted investment environment that rivals the world’s top markets and fuels boundless innovation.”
For his part, Matthew White, CEO of VARA, commented, “This partnership marks a pivotal moment in our journey to future-proof the UAE’s virtual asset economy. By unifying oversight and aligning supervisory frameworks with SCA, we are not only minimising regulatory duplication, but also laying the groundwork for a globally credible, secure, and innovation-first ecosystem. Together, we are setting a new bar for regulatory cooperation that protects market integrity while empowering responsible growth across the entire value chain.”
With this institutional alignment and shared vision, the UAE confidently advances its leadership in virtual asset sector, enhancing competitiveness through the adoption of global best practices and delivering a secure, attractive investment environment that reinforces its position as a leading regional and global investment destination.
Established in March 2022, following the effect of Law No. 4 of 2022, VARA is the competent entity in charge of regulating, supervising, and overseeing VAs and VA Activities in all commercial zones across the Emirate of Dubai, including Special Development Zones and Free Zones but excluding the Dubai International Financial Centre. VARA plays a central role in creating Dubai’s advanced legal framework to protect investors and establish international standards for Virtual Asset industry governance, while supporting the vision for a borderless economy.
