Dubai’s cryptocurrency landscape is currently undergoing a period of transformation. However, smaller players in the industry are struggling with the heavy burden of regulatory compliance. Matthew White, the CEO of Dubai’s Virtual Asset Regulatory Authority (VARA), aims to change this situation.
During the Paris Blockchain Week, White revealed his ambitious plans to reduce the compliance costs that are affecting small crypto entities. Speaking at a regulatory panel discussion, he acknowledged that crypto regulations are not perfect and expressed his desire to find ways to improve them.
One proposal currently being considered is to lessen the financial burdens faced by smaller crypto businesses. According to White, getting regulated is an expensive process that many people cannot afford. The VARA official explained that this issue had been identified by the watchdog, prompting them to search for solutions.
White also outlined a potential solution where larger participants in the industry could “host” smaller ones. This arrangement would shift the costs onto entities with more resources. He emphasized that this approach is part of the regulator’s commitment to foster innovation while also establishing appropriate regulations. White further stated that VARA is actively engaging with the industry to gain a better understanding of its dynamics.
Acknowledging the fast-paced nature of the crypto industry, White admitted that VARA does not claim to have all the answers as a regulator. He highlighted the need for ongoing collaboration and learning in order to effectively regulate this ever-evolving sector.
White took over as the CEO of VARA last year, replacing former CEO Henson Orser. His appointment was part of VARA’s preparation to expand its market operations. This transition occurred in response to the United Arab Emirates tightening its rules and imposing fines on unlicensed virtual asset service providers.
In November, UAE regulators issued joint guidance for VASPs, outlining fines and sanctions for non-compliance. These measures reflect the UAE’s commitment to ensuring a regulated and secure environment for virtual asset services.
Dubai, often referred to as “Crypto City,” continues to be a major player in the global cryptocurrency market. With its dynamic regulatory approach, the city aims to attract businesses and investors seeking opportunities in the crypto space.