The Securities and Commodities Authority (SCA) has announced that Virtual Asset Service Providers (VASPs) licensed in Dubai will now be allowed to operate throughout the entire the UAE.
This decision is part of a broader effort to enhance the regulatory framework for virtual assets in the UAE to boost investor confidence and position the country as a global hub for digital finance.
The announcement was made during a signing event at the SCA’s Dubai office. Attending were the SCA Chairman, Mohamed Ali Al Shorafa, and the Chairman of the Virtual Assets Regulatory Authority (VARA) Executive Board, Helal Saeed Al Marri.
The agreement, signed by the CEOs of SCA and VARA, aims to strengthen the UAE’s position as a top global center for virtual assets, in line with the country’s goals of ‘The Principles of the 50’ to create the world’s best and most dynamic economy.
‘The Principles of the 50” are principles designed to consolidate the UAE’s unity by focusing on strengthening the UAE Union and ensuring that all parts of the country are developed equally. It will help the UAE promote itself as a single economic, tourist, industrial, investment, and cultural destination, creating a strong and recognizable brand.
Mohamed Ali Al Shorafa explained that the goal of the partnership is to build solid systems that support the growth and stability of the digital asset sector of the UAE. “This also ensures that anti-money laundering rules are obeyed and helps boost trust in the UAE’s investment market,” he added.
Additionally, Helal Al Marri said that partners like SCA help offer regulated services easily and safely across the country while handling market risks. “This shows our dedication to responsible innovation, keeping high standards for both cross-border rules and investor protection,” she noted.
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The UAE has embraced the digital asset economy by creating a supportive regulatory environment and establishing itself as a major hub for cryptocurrencies and blockchain technology. The country has developed specific regulations to govern digital assets, with Dubai and Abu Dhabi leading the way.
Dubai introduced its Virtual Assets Law, which defines virtual assets broadly, and established the Virtual Assets Regulatory Authority (VARA) to oversee these activities. This law aims to attract businesses and investors by providing a clear legal framework for operating in the digital asset space.
The UAE has seen a significant increase in crypto transactions, with its share of the global crypto market growing substantially. The government has focused on enhancing its digital infrastructure and promoting innovation in the financial sector.
Various economic zones, like the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM), have been set up to facilitate crypto businesses and attract investment.
