VARA regulators in Dubai are set to offer benefits to small crypto players.
Matthew White, CEO of Dubai’s Virtual Asset Regulatory Authority (VARA), is exploring various strategies to support the survival of smaller Web3 players.
Dubai, now a hub for crypto activities, is adopting a fresh approach to empower and assist smaller Web3 players. VARA, Dubai’s Web3 regulatory authority, aims to streamline operational and compliance processes to make them more cost-effective for small players. Finding ways to manage and reduce compliance costs for startups and emerging entities involved in crypto, metaverse, blockchain, or NFTs is currently a top priority for VARA in Dubai.
Matthew White, CEO of Dubai’s Virtual Asset Regulatory Authority (VARA), discussed these initiatives during the Paris Blockchain Week. He highlighted the ongoing efforts to enhance Dubai’s crypto regulations.
White mentioned various strategies being considered in Dubai to alleviate the burden on smaller Web3 businesses. One potential solution he proposed is for larger, established Web3 players to potentially “host” smaller entities. This arrangement would involve the larger party assisting with some expenses while leveraging the resources or initiatives of the smaller firms to their advantage.
“The larger systemic players bear the burden of compliance costs in this system, enabling smaller players to enter the ecosystem, be regulated, and avoid the same level of compliance costs,” stated the CEO of VARA.
In March 2022, UAE Prime Minister Sheikh Mohammed bin Rashid Al Maktoum officially established VARA to oversee the growth, development, and safety of the Web3 sector. All Web3 entities planning to establish a presence in Dubai are required to register with VARA. Since its inception two years ago, VARA claims to have maintained ongoing discussions with Web3 entities, seeking to understand the industry structure that would optimize business operations.
To facilitate accessibility for industry participants globally, VARA also set up a digital headquarters in The Sandbox metaverse.
In November of the previous year, the UAE introduced a guidance manual for virtual asset service providers (VASPs), detailing compliance requirements for Web3 companies and potential penalties for non-compliance. As per the Crypto Oasis Ecosystem report, there are over 1,800 organizations with a workforce of 8,650 individuals involved in the digital asset industry across the Middle East and North Africa.
