{"id":34409,"date":"2025-10-15T06:39:54","date_gmt":"2025-10-15T06:39:54","guid":{"rendered":"https:\/\/elite-bricks.com\/?p=34409"},"modified":"2025-10-15T06:39:56","modified_gmt":"2025-10-15T06:39:56","slug":"dubais-vara-regulating-the-future-of-virtual-assets","status":"publish","type":"post","link":"https:\/\/elite-bricks.com\/it\/2025\/10\/15\/dubais-vara-regulating-the-future-of-virtual-assets\/","title":{"rendered":"Dubai’s VARA: Regulating the future of virtual assets"},"content":{"rendered":"

Matthew White, CEO of the VARA, on balancing innovation, investor protection, and global leadership in digital finance<\/p>\n\n\n\n

Dubai\u2019s rise as a virtual asset hub is attracting some of the world\u2019s largest players, White explains.. Photo: CHIEW<\/p>\n\n\n\n

Dubai has become the world\u2019s first jurisdiction with a dedicated virtual assets regulator, and its ambitions are unmistakable. Since its inception in 2022, the Virtual Assets Regulatory Authority (VARA) has sought not just to govern but to catalyse a market poised to become a global growth engine. Matthew White, CEO of VARA, explains how the authority is evolving its regulatory framework to keep pace with rapid innovation while ensuring investor protection and market integrity.<\/p>\n\n\n\n

Principles Over Prescriptions: A Flexible Framework<\/p>\n\n\n\n

\u201cThe world of virtual assets is rapidly evolving, and regulators must keep up with the pace of development and innovation in the industry,\u201d White says. To manage this, VARA has built a regulatory framework around simple yet vital principles: clear, principles-based guidance, activity-specific requirements, and strong, data-driven supervision.<\/p>\n\n\n\n

\u201cThe idea is to avoid completely rewriting the rules every time the technology changes to make sure the market has clarity, stability and flexibility,\u201d he explains.<\/p>\n\n\n\n

Since 2022, VARA has grown into a full-scale regulator overseeing one of the most active virtual asset markets globally. White highlights three key priorities: leveraging technology-enabled supervision, safely scaling innovation through pilots and sandboxes, and fostering stronger global alignment. \u201cWe are already testing projects in areas like real-estate tokenisation, and Decentralised Finance (DeFi),\u201d he notes.<\/p>\n\n\n\n

\u201cWe also follow global standards and collaborate closely with authorities like the UAE Securities and Commodities Authority to create a unified national framework and strengthen cross-border cooperation.\u201d<\/p>\n\n\n\n

Innovation Meets Accountability<\/p>\n\n\n\n

White is adamant that fostering innovation does not mean lowering standards. \u201cCompliance and innovation aren\u2019t opposites. They go hand in hand. Everyone benefits when the rules are clear and designed to enable innovation \u2013 investors, consumers, and innovators alike,\u201d he says. VARA\u2019s principles-based framework sets clear guardrails while allowing Virtual Asset Service Providers (VASPs) to determine how best to meet those standards.<\/p>\n\n\n\n

Flexibility comes with accountability. \u201cWhen users are at risk or rules are broken, we act quickly,\u201d White explains. \u201cUnder our new marketing rules, fines can reach up to Dh10 million, a clear signal of the seriousness that we place on compliance.\u201d Engagement with the industry is central to VARA\u2019s approach.<\/p>\n\n\n\n

\u201cEvery time we update our rules, we open consultations with VASPs, tech experts, and investors. Startups can share feedback, and we listen. We also run workshops and participate in major events like GITEX and TOKEN2049 to stay connected with the ecosystem,\u201d he adds.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Matthew White, CEO of VARA.<\/p>\n\n\n\n

Dubai\u2019s rise as a virtual asset hub is attracting some of the world\u2019s largest players, White explains. \u201cInstitutional investors require trusted infrastructure, access to products like derivatives and tri-partite custody arrangements. Having regulated custodians onshore gives them confidence.\u201d Forty VASPs are now fully licensed in Dubai, encompassing major exchanges, broker-dealers, custodians, and startups.<\/p>\n\n\n\n

\u201cIndustry participants value the clarity of our rules, the trust that comes from strong oversight, and the level playing field that VARA creates,\u201d White says. \u201cBut Dubai\u2019s success goes beyond regulation. Companies benefit from world-class infrastructure, 100% foreign ownership in many free zones, quick business setup, zero personal income and capital gains tax, and a low 9% corporate tax, often waived for free zone entities. And beyond the business side, Dubai offers an unmatched lifestyle, modern infrastructure, global connectivity, and initiatives like the Golden Visa for tech entrepreneurs.\u201d<\/p>\n\n\n\n

Preparing for Tokenised Real-World Assets and AI-Enabled Platforms<\/p>\n\n\n\n

White is clear that Dubai is positioning itself beyond conventional cryptocurrencies. \u201cThis is already happening. We are moving beyond pilots into real-world implementation,\u201d he says. A prime example is the Dubai Land Department\u2019s Property Token Ownership Certificate, which officially links tokenised assets to the land registry. \u201cOur first fully sold-out tokenised real estate project on Prypco Mint involved more than 200 investors from 44 nationalities, and 70% of those were investing in Dubai\u2019s property market for the first time,\u201d he notes.<\/p>\n\n\n\n

The authority is also expanding into DeFi and AI-powered Web3 platforms. \u201cEarlier this year, VARA became one of the first regulators to licence certain DeFi activities, issuing a DeFi Limited Licence that allows exchange, broker-dealer, and investment services under strict guardrails,\u201d White says.<\/p>\n\n\n\n

\u201cOur Pilot Framework allows new products to be tested safely with enhanced reporting and limited client exposure. Recent pilots, such as OTC options and retail derivatives, show how we phase innovation responsibly.\u201d<\/p>\n\n\n\n

On governance and tech oversight, White emphasises, \u201cOur Technology & Information Rulebook ensures firms have robust governance in place, from cybersecurity and CISO oversight to smart contract audits and data protection. We are not just regulating today\u2019s market \u2013 we are preparing for what\u2019s next.\u201d<\/p>\n\n\n\n

Dubai\u2019s VARA, under White\u2019s leadership, is carving out a model that combines pro-innovation regulation with strong accountability, attracting global capital, and laying the groundwork for the next generation of digital assets. \u201cOur ultimate goal is clear \u2013 to make virtual assets a real, diversified growth engine for Dubai, one that attracts capital, creates jobs, and can compete on the global stage,\u201d White concludes.<\/p>\n\n\n\n

Source: Khaleej times<\/strong><\/p>\n\n\n\n

Published: 15 October 2025<\/strong><\/p>\n\n\n\n

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Matthew White, CEO of the VARA, on balancing innovation, investor protection, and global leadership in digital finance Dubai\u2019s rise as a virtual asset hub is attracting some of the world\u2019s largest players, White explains.. Photo: CHIEW Dubai has become the world\u2019s first jurisdiction with a dedicated virtual assets regulator, and its ambitions are unmistakable. Since […]<\/p>","protected":false},"author":7,"featured_media":34411,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[5099,347,5098,5100,5101],"class_list":["post-34409","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-culture","tag-dubai","tag-events","tag-festival-of-lights","tag-wafi-city"],"_links":{"self":[{"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/posts\/34409","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/comments?post=34409"}],"version-history":[{"count":1,"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/posts\/34409\/revisions"}],"predecessor-version":[{"id":34412,"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/posts\/34409\/revisions\/34412"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/media\/34411"}],"wp:attachment":[{"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/media?parent=34409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/categories?post=34409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/elite-bricks.com\/it\/wp-json\/wp\/v2\/tags?post=34409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}