The United Arab Emirates has taken a formal step toward unified UAE crypto regulation.
The Securities and Commodities Authority (SCA) and the Dubai Virtual Assets Regulatory Authority (VARA) announced a new agreement to coordinate their crypto oversight frameworks.
This partnership follows a 2024 memorandum of understanding. Now, both agencies will implement the terms into practice.
A VARA spokesperson confirmed that the update “operationalises that intent” by creating direct mechanisms between the regulators.
The agreement allows mutual license recognition across the UAE for virtual asset service providers (VASPs). However, it does not offer automatic approvals across emirates.
Mutual License Recognition, No Automatic Passporting
The agreement includes VASP licensing reciprocity. That means a VASP licensed by VARA in Dubai may apply for recognition from the SCA—and vice versa. However, recognition is not automatic.
A VARA spokesperson said the process includes regulatory protocols such as anti-money laundering (AML) and counter-terrorist financing (CFT) assessments. It also requires checks for operational readiness and regulatory alignment.
“Licensing reciprocity is a key feature, but not automatic passporting,” the spokesperson told Cointelegraph. Each firm must still go through a coordinated process before operating in a different emirate under the new UAE crypto framework.
New Crypto Rules Streamline VASP Approvals in UAE
The new framework removes the need for crypto firms to apply separately to each regulator when operating across the country.
VARA stated that the system reduces conflicting approval processes and improves overall efficiency for licensed VASPs.
Regulators will now share real-time data, register VASPs through a unified system, and apply joint supervision protocols. This structure lowers duplication and enables consistent enforcement under UAE crypto regulation.
According to VARA, this structure allows VASPs to enter the market faster by reducing the steps required across different emirates. It also ensures clear regulatory standards for firms expanding outside Dubai.
SCA Launches Legislative Review Committee for Crypto Oversight
As part of the agreement, the Securities and Commodities Authority (SCA) approved the creation of a Legislative Review Committee. This committee will work with VARA to evaluate existing crypto rules and propose changes.
The review will align UAE crypto regulation with international standards. The committee will examine all legislation related to virtual assets and report findings to both authorities for further action.
The committee is expected to provide regular input on how the UAE can maintain regulatory consistency while adjusting to changes in the global crypto sector.
SCA and VARA Outline Goals for UAE Crypto Framework
Officials from both agencies addressed the update. VARA CEO Matthew White said the agreement marks progress in building structured oversight for the country’s crypto ecosystem. SCA CEO Waleed Al Awadhi focused on trust and transparency as central pillars for regulatory growth.
The updated UAE crypto framework will give clearer rules for all licensed VASPs across the country. It also establishes a single path to national compliance through shared registration and supervision.
The agreement represents the first direct implementation of coordinated oversight between VARA and the SCA after their 2024 memorandum.
Broader Coordination Ongoing Across UAE Regulatory Bodies
VARA confirmed that the agreement with SCA is part of a wider effort to increase national coordination in UAE crypto regulation.
Other regulators, including Abu Dhabi Global Market (ADGM), remain part of the discussion.
A VARA spokesperson said the goal is to improve supervisory consistency, interoperability, and cross-border cooperation.
These dialogues aim to form a stable foundation for future regulatory development across emirates and with global stakeholders.
“Future collaborations remain a strategic priority,” the spokesperson said. The plan includes long-term engagement with both UAE and international regulators.
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Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: August 4, 2025 • 🔄 Last updated: August 4, 2025
