The United Arab Amritus (UAE) The Securities and Commodities Authority (SCA) and the Dubai Virtual Assets Regulatory Authority (VARA) announced a strategic partnership for Crypto Regulators to unite the UAE’s approach.
Last September, regulators expressed to work together towards uniting the crypto framework in the country. One of the feature of the partnership is that it will allow Dubai-based licenses to serve the interior UAE, which has been shared with the coinlagraph for Wednesday’s announcement.
A VARA spokesperson told cointelegraph that the latest development formalize the agreement between two regulators and “complete that operation” with the concrete mechanism.
“In short, the 2024 MoU was a starting point.
Licensing mutuality, no automatic passporting
While the Agreement establishes a mechanism for mutual recognition of license between SCA and Vara, it will not offer automatic “passporting” of the license of license.
The spokesperson said, “Licensing is a major feature of mutuality partnership, but not automated passporting.”
The spokesperson clarified that the agreement establishes a mutual recognition mechanism between SCA and Vara.
This means that one VASP licensed by one authority can be recognized by another. However, they will be subject to the coordination protocol and applicable regulatory checks.
“This includes AML/CFT assessment, operational readiness and supervisory alignment, which for the treatment of national security and composition standards,”
For VASP to work and operate in the UAE, the partnership provides a streamlined route for regulatory clarity, low repetition and national coverage.
A Vara spokesperson stated that it “separate, potentially conflicting” eliminates the need to navigate the approval processes, which “reduces operating risk and improves market speed.”
The spokesperson said, “It also strengthens the global appeal of the UAE as a reliable, innovative jurisdiction, which is with an integrated approach with an integrated approach to virtual asset inspection.”
SCA Forms Committee to Refine Rights
The mechanisms include an integrated virtual asset service provider (VASP) Registration Framework, Mutual license recognition, real-time data sharing and joint supervision protocols, cross-jurisdictional anti-mani laundering (AML) coordination and formation of a legislative review committee.
The SCA approved the formation of the committee, which is mandatory to work with Vara to evaluate and refine the crypto rules in the post with international best practices. This indicates commitment from both sides to create a globally competitive regulatory environment.
Officials of both regulators described the partnership as a leading step to keep the UAE as a lead under the Crypto rule.
Vara CEO Matthew White called the partnership at the same time “A Pivatal Moment”, SCA CEO Walid Al Awadhi said that transparency and trust are central to attract investment.
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A comprehensive effort to increase regulator coordination
While there is a bilateral agreement between recent development SCA and Vara, the spokesperson explained the part of a comprehensive UAE effect cointelegraph to increase national level regulatory coordination.
The groom said that there is a dialogue going on to promote the difference, supervisory stability and border cooperation between other regulators, Abu Dhabi Global Markets (ADGM) and local and international stakeholders.
The spokesman said, “Future cooperation remains a strategic priority.”
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