The United Arab Emirates (UAE) seeks to unify the regulation of the nation by allowing VASPs licensed in Dubai to operate across the country More than fifty firms have been licensed by the Dubai Integrated Information Portal, which will enable them to offer their services throughout the United Arab Emirates. This will help ease the process of establishment of crypto businesses from Dubai to the rest of the emirates thus strengthening the unity in the cryptocurrency market across UAE.
The programme entails a coordination between the Dubai Virtual Asset Regulatory Authority (VARA), and the United Arab Emirates Financial Services Authority (FSA), which will both co-regulate VASP activities and scrutiny across emirates. Licensed business in Dubai will be treated as automatically approved to operate throughout the country for securities and commodities under SCA while all others from other emirates will required the SCA approval.
According to His Excellency Mohamed Ali Al Shorafa, the need for such an agreement cannot be overemphasized given the need to establish a solid and secure environment for Virtual Assets. The UAE’s decision arrives on the heels of the country being ranked number 3 in terms of crypto adoption according to Henley & Partner’s global index.
