Unified crypto licensing framework takes shape in the UAE
The United Arab Emirates is moving to streamline its cryptocurrency regulations. The country’s Securities and Commodities Authority (SCA) and Dubai’s Virtual Assets Regulatory Authority (VARA) have formalized a strategic partnership to unify regulatory oversight of virtual assets across the UAE.
The move is a major step toward national-level consistency in crypto frameworks, creating a clearer path for virtual asset service providers (VASPs) to operate across the country.
Mutual license recognition without automatic passporting
According to a VARA spokesperson, the partnership enables mutual license recognition between the SCA and VARA but does not grant automatic passporting between Emirates.
“Licensing reciprocity is a key feature of the partnership, but not automatic passporting,” said the spokesperson, clarifying that each VASP will still need to pass regulatory checks and meet compliance standards in coordination with both authorities.
This includes assessments for Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT), operational readiness reviews, and supervisory alignment to protect national security and ensure regulatory integrity.
Streamlined process for VASPs in the UAE
The partnership simplifies the licensing process for crypto companies in the UAE by removing redundant regulatory hurdles and minimizing conflicting approval requirements. This reduces operational risk, accelerates time-to-market, and provides greater clarity for businesses navigating the virtual asset space.
According to VARA, the new structure strengthens the UAE’s global appeal as a crypto hub with a “credible, innovation-first jurisdiction” approach to virtual asset regulation.
New committee to enhance regulatory frameworks
As part of the cooperation, the SCA has formed a Legislative Review Committee to work with VARA on refining the country’s crypto regulations in alignment with international best practices.
Other key mechanisms in the new framework include:
- A unified VASP registration framework
- Real-time data sharing and joint supervision
- Cross-jurisdictional AML coordination protocols
These efforts are designed to build a globally competitive environment for crypto businesses operating in or entering the UAE.
Leadership perspective on UAE’s crypto future
VARA CEO Matthew White called the collaboration “a pivotal moment” for future-proofing the UAE’s digital economy, while SCA CEO Waleed Al Awadhi emphasized the importance of trust and transparency in attracting long-term crypto investment.
Beyond Dubai and Abu Dhabi: national coordination underway
Although the agreement currently focuses on the SCA and VARA, it is part of a broader regulatory alignment across the UAE. VARA confirmed that it is in discussions with other regulators, including Abu Dhabi Global Market (ADGM), to promote cross-border cooperation, regulatory interoperability, and supervisory consistency.
“Future collaborations remain a strategic priority,” the VARA spokesperson added.
