Matthew White, CEO of Dubai’s Virtual Asset Regulatory Authority (VARA), spoke at a regulatory panel discussion during the Paris Blockchain Week, acknowledging the challenges faced by smaller crypto entities in meeting regulatory compliance. He emphasized the need for innovative solutions to ease the burden of compliance costs and proposed potential strategies such as larger market participants hosting smaller ones to share compliance responsibilities. White highlighted VARA’s objective of balancing innovation with regulation and its inclusive approach to regulation, welcoming all players in the crypto community to participate in the regulated ecosystem.
Established in March 2022, VARA aims to oversee and cultivate the Web3 ecosystem in Dubai. Less than a year later, in February 2023, the authority unveiled comprehensive regulatory guidelines for virtual asset service providers (VASPs), including four mandatory rulebooks and seven activity-specific rulebooks. Matthew White took over as CEO in November 2023, succeeding Henson Orser. Despite the tightening of regulations in the UAE, White expressed optimism about using technology to achieve policy objectives while acknowledging the necessity of significant regulations in the short to medium term. He hinted at the possibility of exploring technological solutions through pilot programs at VARA.
White stressed the importance of regulatory certainty in attracting investments and enabling organizations to grow and scale in Dubai’s crypto ecosystem, which includes nearly 2,000 web3 or crypto companies. He emphasized the need to balance innovation with regulation to ensure the industry’s maturity and long-term planning for businesses. White discussed the potential for technology to help achieve policy objectives and hinted at the authority’s plans to explore technological solutions through pilot programs. He also addressed the challenges of navigating regulatory frameworks while highlighting the benefits of regulation in facilitating industry growth and development.
VARA’s CEO advocated for solutions to address the high costs associated with regulatory compliance, particularly for smaller crypto entities with limited resources. White highlighted the authority’s engagement with industry stakeholders and government officials to develop regulations that accommodate the diverse needs of the crypto community. He proposed strategies such as larger market participants hosting smaller ones to alleviate compliance costs and enable smaller players to enter the regulated ecosystem. White underscored VARA’s commitment to fostering innovation while ensuring regulatory compliance and outlined the authority’s inclusive approach to regulation, welcoming all participants in the industry to be part of it.
In discussing the future of crypto regulation in Dubai, White acknowledged the inevitability of significant regulations in the short to medium term, driven by recent high-profile events impacting major countries’ regulatory agendas. Despite the challenges posed by tightened regulations in the UAE, White expressed optimism about leveraging technology to achieve policy objectives in the long term. He hinted at the possibility of exploring technological solutions through pilot programs at VARA, aligning with the authority’s philosophy of using innovation to navigate regulatory challenges. White’s appointment as CEO in November 2023 marked a period of transition for VARA as it prepared to transition to full-scale market operations and implement comprehensive regulatory guidelines tailored for virtual asset service providers.
