A quick look at VARA Compliance of Digital Asset in the UAE
Whether you’re considering setting up in Dubai or expanding globally, this session will provide clarity on leveraging the UAE’s proactive regulatory framework. This talk will explore how VARA’s focus on digital assets is transforming crypto finance, paving the way for compliant innovation, and creating unique opportunities for blockchain ventures in the region. Don’t miss insights on the latest AML measures, operational ease for VASPs, and what Dubai’s flexible regulatory approach means for your business.
- VARA Overview: Established in 2022, VARA is a specialized regulatory body in Dubai focused on overseeing and enabling digital asset transactions.
- Benefits for VASPs: With VARA’s regulatory support, virtual asset service providers can access essential banking and off-ramping options within a compliant framework.
- Comparative Insight: Learn how VARA’s flexible approach contrasts with the more traditional ADGM regulations in Abu Dhabi.
- Future Outlook: Explore how Dubai’s central role as a hub for crypto and blockchain aligns with the UAE’s broader digital transformation goals.
Meet Our Speakers
Watch and learn from an international group of industry leaders at the forefront of Crypto Accounting
Joe David
Founder
Myna - Nephos Group
Shivani Phull
CFO
Pyxelnyx - KOR Protocol
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Read the highlights from the talk
Can you tell us about VARA’s establishment and what it means for digital assets in Dubai?
Joe David: Certainly. VARA was set up in 2022 specifically to regulate digital assets in Dubai. What makes it unique is its exclusive focus on crypto and digital assets, allowing it to evolve quickly and respond to industry needs. This approach has been essential in creating a compliant yet innovative environment, making Dubai a global hub for digital asset companies.
Can you explain how VARA differs from Abu Dhabi’s ADGM?
Shivani Phull: Sure. ADGM in Abu Dhabi takes a broader, more traditional financial regulatory approach, where digital assets are just one part of a larger financial system. VARA, however, is tailored solely for crypto. This focus allows it to be more flexible and reactive, which is essential given the rapid changes in the crypto world. Businesses can decide based on their needs—whether they need a more adaptable or traditional regulatory framework.
How does VARA support crypto businesses in terms of banking and compliance?
Joe David: One of the significant advantages of VARA is how it facilitates banking for crypto businesses. VARA’s licensing and regulatory framework, with rigorous AML and KYC standards, assures banks of a business’s compliance. This assurance makes banks more comfortable working with crypto companies, which is a big advantage for businesses in Dubai compared to many other regions.
What challenges do crypto businesses face in managing data for compliance, and how does VARA help?
Joe David: Data management is definitely a challenge, especially with so many blockchains and exchanges handling information differently. VARA’s standards align with global frameworks like IFRS, making it easier to meet compliance while managing complex data. Still, consistency across platforms can be tricky, but VARA’s support gives firms a framework to operate more smoothly.
Shivani Phull: I agree. From an audit perspective, it’s all about data completeness. VARA’s regulatory framework supports consistency, but ensuring data accuracy from various sources—block explorers, subledgers, and ERPs—is still a major effort.
How does Dubai’s regulatory approach compare globally?
Shivani Phull: Dubai stands out because of VARA’s agility and crypto-focused stance. Unlike regions with slower-moving regulations, Dubai can react quickly, making it very attractive for global crypto companies. Initiatives like anti-money laundering protocols and blockchain-friendly policies have given Dubai credibility in the industry, especially compared to the U.S. or Europe, where crypto regulations are still evolving.
What final thoughts would you like to share about Dubai’s crypto landscape?
Joe David: Dubai is becoming a central hub for digital assets. It’s a great place to innovate and operate, and VARA’s approach is a significant part of that. For anyone considering the UAE, Dubai offers a strong foundation for compliant growth.
Shivani Phull: Absolutely. The concentration of knowledge and innovation here is unique. Dubai’s approach, along with the government’s support, makes it an ideal environment for crypto and Web3.
To access the full discussion and insights on VARA’s role in Dubai, sign up to watch the complete session.
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