According to Cointelegraph: Matthew White, CEO of Dubai's Virtual Asset Regulatory Authority (VARA), has voiced an intention to make the regulatory environment more hospitable for smaller cryptocurrency entities by reducing compliance costs.
During a regulatory panel discussion at Paris Blockchain Week, White acknowledged that the current regulations were not perfect and expressed his commitment to enhancing them. A significant topic of concern is the financial burden smaller crypto businesses bear when striving for compliance.
White termed being regulated as a "costly exercise," acknowledging that many smaller entities lack the necessary resources. Therefore, VARA is actively exploring potential solutions to this issue.
One such solution suggested by White involves larger market players "hosting" smaller ones, thereby shouldering the financial weight of compliance on their behalf. This arrangement would allow smaller entities to join the regulated ecosystem without having to contend with the substantial costs of compliance.
Engaging with the industry and enhancing regulations while fostering innovation is part of VARA's mission, according to White. His comments came amid an increasingly stringent regulatory environment in the UAE, with stricter rules and fines imposed on unlicensed virtual asset service providers.