Dubai’s cryptocurrency landscape is currently experiencing a period of significant change, but within this dynamic environment, smaller players are struggling with the burdensome weight of regulatory compliance. Matthew White, the CEO of Dubai’s Virtual Asset Regulatory Authority (VARA), is determined to alter this narrative.
During an exclusive revelation at the Paris Blockchain Week, White unveiled his ambitious plans to alleviate the high costs associated with compliance that are burdening small cryptocurrency entities. Speaking at a regulatory panel discussion, White acknowledged that cryptocurrency regulations are not flawless and expressed his desire to find ways to improve them.
One proposal currently under consideration involves reducing the financial burdens faced by smaller cryptocurrency businesses. White acknowledged that the process of getting regulated is an expensive endeavor, and many individuals lack the necessary resources. The VARA official revealed that they had experienced this issue firsthand, prompting them to search for solutions.
White elaborated on a potential solution, suggesting that larger industry participants could “host” smaller entities. In this scenario, the costs would be borne by entities with greater resources. White emphasized that exploring alternative approaches is an integral part of the regulator’s journey toward fostering innovation while simultaneously creating effective regulations. He emphasized that VARA continues to actively engage with the industry to gain a deeper understanding of its complexities.
“We recognize that the cryptocurrency space moves at an incredibly rapid pace. As a regulator, we do not claim to possess all-encompassing knowledge,” White admitted.
Last year, White assumed the position of CEO at VARA, replacing former CEO Henson Orser. VARA announced that White’s appointment was part of their preparations to expand their operations to encompass the entire market. This leadership transition occurred as the United Arab Emirates tightened its regulations and implemented fines for unlicensed virtual asset service providers.
Furthermore, on November 8, regulators in the United Arab Emirates collaborated to release joint guidance for VASPs, outlining fines and sanctions for non-compliance.
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