Relief for Small Crypto Firms: Dubai Virtual Asset Regulator Aims to Lighten Load

Dubai’s Virtual Asset Regulatory Authority (VARA) CEO, Matthew White, expressed the organization’s desire to alleviate the burdens faced by smaller cryptocurrency entities. Speaking at a regulatory panel discussion during the Paris Blockchain Week, White acknowledged that crypto regulations are not flawless and emphasized the need for improvement. One of the proposals being considered is reducing the financial responsibilities for smaller crypto businesses. White stated that he is exploring various options to make the regulatory framework more inclusive. He mentioned that the compliance costs are particularly challenging for smaller entities due to limited resources. This issue prompted VARA to search for solutions.

White suggested a market structure where larger players could provide support to smaller participants. In this model, entities with more resources would bear the compliance costs, enabling smaller players to enter the regulated ecosystem without facing the same level of financial burden. VARA is actively seeking ways to balance innovation with comprehensive regulations, and White emphasized their commitment to engaging with the industry to gain a better understanding of it. He acknowledged that the industry evolves at a rapid pace, and as regulators, they do not claim to possess all the knowledge in the field.

Matthew White assumed the position of VARA CEO in place of Henson Orser in the previous year. On November 16th, VARA announced White’s appointment as part of their preparations for full-scale market operations. This leadership change came in response to the United Arab Emirates’ tightening of rules and implementation of fines for unlicensed virtual asset service providers. UAE regulators collaborated on a joint guidance for Virtual Asset Service Providers (VASPs), which outlined fines and sanctions for non-compliance.

By embracing measures to support smaller crypto entities and pursuing a collaborative approach with the industry, VARA aims to create a regulatory framework that fosters innovation while ensuring compliance. Their efforts reflect a commitment to adapt to the constantly evolving crypto landscape and foster a more inclusive and efficient ecosystem.