The United Arab Emirates (UAE) has taken a significant step toward harmonizing its approach to crypto regulation. The country’s Securities and Commodities Authority (SCA) and the Dubai Virtual Assets Regulatory Authority (VARA) have announced a strategic partnership to unify the UAE’s approach to crypto regulations.
In September, both regulators expressed their intention to work together toward unifying crypto frameworks in the country. One feature of the partnership is that it will allow Dubai-based licenses to service the entire UAE, according to a Wednesday announcement shared with Cointelegraph.
A VARA spokesperson told Cointelegraph that the latest development formalizes the agreement between the two regulators and “operationalises that intent” with concrete mechanisms.
“In essence, the 2024 MOU was a starting point. The current partnership is its formal and functional implementation,” VARA said.
Licensing reciprocity, not automatic passporting
While the agreement establishes a mechanism for mutual recognition of licenses between SCA and VARA, it will not offer automatic “passporting” of licenses across jurisdictions.
“Licensing reciprocity is a key feature of the partnership, but not automatic passporting,” the spokesperson said.
The spokesperson clarified that the agreement establishes a mutual recognition mechanism between the SCA and VARA.
This means that a VASP licensed by one authority can be recognized by the other. However, they will be subject to coordination protocols and applicable regulatory checks.
“This includes AML/CFT assessments, operational readiness, and supervisory alignment, ensuring that national security and compliance standards remain robust,” the spokesperson told Cointelegraph.
For VASPs operating and wanting to operate in the UAE, the partnership provides regulatory clarity, reduced duplication and a streamlined route to national coverage.
The VARA spokesperson said this eliminates the need to navigate “separate, potentially conflicting” approval processes, which “lowers operational risk and improves speed to market.”
“It also strengthens the UAE’s global appeal as a credible, innovation-first jurisdiction with a unified approach to virtual asset oversight,” the spokesperson added.
SCA forms committee to refine regulations
The mechanisms include a unified virtual asset service provider (VASP) registration framework, mutual license recognition, real-time data sharing and joint…
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