UAE Moves Towards Unified Crypto Licensing With SCA-VARA Agreement
Crypto regulation in the UAE is entering a new phase.
The country’s two main regulators, the Securities and Commodities Authority (SCA) and Dubai’s Virtual Assets Regulatory Authority (VARA), have joined forces to streamline the licensing and supervision of virtual asset service providers (VASPs) across the nation.
The partnership formalises a previously signed Memorandum of Understanding (MoU) and introduces a coordinated structure that aims to bring consistency to how digital asset firms are regulated across different emirates.
Licences Recognised Nationwide but No Blanket Passporting
One of the key features of the agreement is a mutual recognition framework for VASP licences between the SCA and VARA.
This will enable virtual asset firms licensed in Dubai to operate in other parts of the UAE without undergoing a separate approval process—though not without conditions.
A VARA spokesperson confirmed that while there will be licensing reciprocity, automatic passporting will not be part of the deal.
The spokesperson added,
“This includes AML/CFT assessments, operational readiness, and supervisory alignment.”
Firms will still undergo coordinated regulatory checks before being approved to operate nationally.
Dubai Licences Could Open Doors to National Expansion
The regulators have agreed to coordinate closely on licensing, inspection, compliance monitoring and enforcement, effectively reducing the need for companies to navigate multiple processes when operating in both Dubai and the wider UAE.
According to the announcement shared with Cointelegraph, this could reduce operational risk and speed up market entry for crypto firms.
The new framework is expected to simplify how VASPs expand within the UAE and improve the overall regulatory experience.
The VARA spokesperson said,
“It lowers operational risk and improves speed to market.”
New Committee to Overhaul Crypto Legislation
To back the unified licensing system, the SCA has approved the creation of a Legislative Review Committee, which will work with VARA to refine and adapt existing virtual asset rules.
The committee is tasked with ensuring the UAE’s crypto laws stay aligned with global standards, including those set by the Financial Action Task Force (FATF).
Joint efforts will also focus on sharing regulatory data in real-time and running coordinated inspections.
This includes cross-jurisdictional oversight to strengthen compliance with anti-money laundering and counter-terrorism financing (AML/CTF) standards.
National Strategy but Wider Cooperation Remains a Goal
Though the agreement currently involves only the SCA and VARA, the move is part of a broader national effort to align crypto oversight.
VARA noted that ongoing discussions are taking place with other key regulators, including Abu Dhabi Global Market (ADGM), to further enhance regulatory interoperability and supervisory consistency.
The VARA spokesperson added,
“Future collaborations remain a strategic priority.”
This hints at the prospect of further regulatory alignment.
Regulators Say Trust and Innovation at the Centre
Officials say the move strengthens the UAE’s position as a reliable and innovation-friendly hub for digital assets.
VARA CEO Matthew White called the agreement “a pivotal moment” for advancing the UAE’s digital economy, while SCA CEO Waleed Al Awadhi highlighted transparency and trust as essential factors in drawing international investment to the sector.
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