By letting Dubai-licensed Virtual Asset Service Providers (VASPs) work all over the country, the United Arab Emirates has taken a big step toward making its crypto regulations stronger. The Securities and Commodities Authority (SCA) and Dubai’s Virtual Assets Regulatory Authority (VARA) have signed a new agreement that will make it easier to get licenses and help the UAE’s fast growing virtual asset business be supervised by a single body.
VASPs licensed in Dubai can work all over the country.
The deal says that VASPs that are already registered by VARA in Dubai can sign up with the SCA automatically. This lets them offer their services all over the UAE. Companies that want to do business outside of Dubai must still get separate permission from the SCA. For all emirates, this makes sure that legal standards are kept.
Cooperation and control by regulators
The partnership covers a number of important areas of control, such as sharing information, training employees, and punishing providers who don’t follow the rules. This all-around method helps make sure that businesses that deal in virtual assets can do so in the UAE in a safe and controlled way.
Getting investors to trust you
Chairman of VARA’s executive board Helal Saeed Al Marri stressed how important this teamwork is for making sure that all of the country’s regulations work together. Many controlled services can be used in different countries, which gives companies and investors trust in the UAE’s growing crypto economy. Chairman of the SCA Mohamed Ali Al Shorafa also said that the deal is in line with Anti-Money Laundering (AML) rules. This makes the country’s image even stronger as a safe place for crypto businesses to operate.
Crypto payments can be legally accepted
A new change to the law in Dubai shows that the UAE is even more open to virtual goods. It was a big step forward for digital assets to be used in everyday deals when the Dubai Court of First Instance said that cryptocurrencies could be used as a valid payment method in job contracts.
UAE is the world leader in using cryptocurrencies.
The UAE has quickly become a world leader in the field of crypto. A new study says that the country is third in the world for crypto usage, behind only the United States and other big markets. Key things that have put the UAE at the top of the digital finance industry are regulatory moves like the agreement between VARA and the SCA and the formal recognition of crypto transactions.
As the country builds its image as a crypto-friendly place to live, its government stays focused on encouraging new ideas and improving the digital infrastructure that the industry needs to keep growing.
