In a bid to foster inclusivity within Dubai’s burgeoning crypto landscape, Matthew White, CEO of Dubai’s Virtual Assets Regulatory Authority (VARA), is exploring avenues to alleviate compliance costs for smaller players. Speaking at Paris Blockchain Week, White articulated his commitment to tailoring regulations to accommodate all entities, irrespective of size.
White’s remarks underscore a proactive stance aimed at ensuring regulatory frameworks are accessible to all crypto firms. He stated, “There’s a number of things that I’m looking at the moment in order to try and make the regime and the regulation fit for everybody,” Specifically, he emphasized the need to mitigate the financial burden of compliance for smaller entities operating within Dubai’s digital assets ecosystem.
As the sole digital assets regulator in Dubai, VARA holds significant sway over the emirate’s crypto sector. Dubai’s introduction of crypto regulations last year marked a pivotal moment, drawing both praise and concern from industry stakeholders. While established firms like Crypto.com, Deribit’s Dubai-based unit, and crypto hedge fund Nine Blocks have obtained licenses to operate, White acknowledges the challenges faced by smaller players.
White highlighted the disparity in resources among crypto firms seeking regulatory approval. “Not many people have the resources to be able to go and get regulated and that is something that we’ve seen, so we’re looking at structures whereby we can have larger market participants hosting smaller ones, for example,” he observed. In response, VARA is exploring innovative structures to facilitate market participation, including the possibility of larger market participants supporting smaller entities. This collaborative approach aims to foster a diverse and inclusive crypto ecosystem in Dubai.