YEREVAN (CoinChapter.com) — The UAE continues to expand its crypto regulatory framework. In a major step forward, the country’s key regulators have reached an agreement that now allows Dubai-licensed Virtual Asset Service Providers (VASPs) to offer their services across the entire United Arab Emirates. This move aims to streamline licensing procedures while also enhancing oversight of the rapidly growing virtual asset industry.
UAE Crypto Market Benefits from Nationwide Licensing Agreement
The UAE’s Securities and Commodities Authority (SCA) and Dubai’s Virtual Assets Regulatory Authority (VARA) have formalized a cooperation agreement. This partnership allows Dubai-licensed VASPs to automatically register with the SCA to operate throughout the country. However, VASPs wanting to serve areas outside of Dubai must still secure separate approval from the SCA.
The new agreement clearly outlines key aspects of regulatory oversight. These include information sharing between agencies, employee training, and the imposing of penalties. By taking this comprehensive approach, it ensures that virtual asset companies can operate in a regulated, secure environment across all emirates.
UAE Virtual Assets Regulatory Framework. Source: SCA and VARA Officials Highlight Strengthened Regulatory Cohesion
Helal Saeed Al Marri, Chairman of VARA’s executive board, commented on the significance of this collaboration. He pointed out that it ensures “passportability of regulated services” across the UAE, thus providing greater confidence for businesses and investors in the country’s crypto ecosystem.
Meanwhile, his counterpart, Mohamed Ali Al Shorafa, Chairman of the SCA, emphasized the importance of fostering a stable and growing virtual assets sector. He also noted that the agreement aligns with Anti-Money Laundering (AML) standards, further strengthening the UAE’s global reputation as a leading destination for crypto businesses.
Legal Recognition of Crypto Payments in the UAE
Further strengthening the UAE’s stance on cryptocurrency, Dubai’s Court of First Instance recently made a key ruling regarding the use of cryptocurrency as a valid payment method. The court ruled on case number 1739 of 2024 that digital assets could be used for payment under employment contracts.
UAE lawyer Irina Heaver explained that this ruling marks a significant milestone in the adoption of crypto payments in the country. The UAE continues to demonstrate its openness to virtual assets as a tool for everyday transactions.
UAE Emerges as a Global Crypto Leader
A study by Henley & Partners shows the UAE ranks third in global crypto adoption. In fact, it surpasses major countries, including the United States. In addition, regulatory cohesion between Dubai and the federal government plays a key role. Legal recognition of crypto transactions further strengthens the UAE’s position. These factors make the UAE a leading player in the global virtual assets market.
Global Crypto Adoption Rankings. Source: Henley & Partners
Above all, these regulatory developments, combined with a forward-looking legal framework, position the UAE as a leading hub for the future of cryptocurrency.
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