KEY POINTS
Matthew White, the Chief Executive Officer of Dubai’s Virtual Asset Regulatory Authority (VARA), is spearheading efforts to streamline regulatory processes for burgeoning cryptocurrency businesses.
At a panel during Paris Blockchain Week, White recognized the shortcomings in the existing cryptocurrency regulations and expressed his commitment to enhancing them.
Strategies to Reduce the Financial Pressures on Small-Scale Crypto Ventures
White pointed out that navigating the regulatory landscape is a costly endeavor, often inaccessible to many due to limited resources. This realization stemmed from VARA’s own experiences, prompting the authority to seek practical solutions. A notable proposal under review is a collaborative framework where established market players would extend support to their smaller counterparts.
Under this proposed arrangement, the financial responsibilities of compliance would be assumed by the larger, well-resourced entities. This would enable smaller businesses to enter the regulated space without bearing the full brunt of compliance costs.
White emphasized that such forward-thinking measures are crucial to VARA’s goal of nurturing innovation within a structured regulatory environment. The authority remains proactive in its dialogue with industry experts to refine its regulatory approach.
Resolve for a Compliant and Secure Virtual Asset Market
In a strategic leadership transition aimed at scaling up its market activities, VARA appointed White as the new CEO last year, replacing Henson Orser. This leadership shift aligned with the United Arab Emirates’ intensified regulatory measures, which included imposing fines on unlicensed virtual asset service providers.
Furthermore, on November 8, the United Arab Emirates’ regulators unveiled a joint guidance for virtual asset service providers, detailing the repercussions, including fines and sanctions, for failing to comply with regulations. This guidance underscores the nation’s resolve to ensure a compliant and secure virtual asset market.
