SCA and VARA Partnership Extends Dubai’s Tiered Licensing Model for Virtual Assets Across the UAE

The Securities and Commodities Authority (SCA) and Dubai’s Virtual Asset Regulatory Authority (VARA) have announced a strategic collaboration to broaden the tiered licensing framework for virtual assets to encompass the entire United Arab Emirates. This partnership intends to establish a consistent and transparent regulatory environment for virtual asset firms operating within the country, fostering growth and innovation in the sector. SCA will oversee the securities-related aspects of virtual assets, while VARA will be responsible for regulating virtual asset facets that are not classified as securities. This collaboration enables companies to obtain a unified license covering all their virtual asset-related activities throughout the UAE, thereby reducing regulatory complexity and facilitating compliance. The unified regulatory structure is expected to attract increased foreign investment to the UAE’s virtual asset sector and solidify its position as a global hub for virtual assets.