The United Arab Emirates has formalized a cooperation agreement between its two main crypto regulators. The Securities and Commodities Authority and the Dubai Virtual Assets Regulatory Authority have agreed to unify the country’s approach to virtual asset regulation.
In Dubai, crypto regulation follows a structured and layered system. The Dubai Financial Services Authority offers an Innovation Testing Licence. This allows firms to operate under limited conditions before receiving full approval. Both DFSA and VARA use tiered licensing models, with oversight tailored to the type of business activity.
Licensing Reciprocity and Shared Oversight
The agreement establishes shared licensing, registration, and supervision procedures for Virtual Asset Service Providers. It includes protocols for real-time data exchange, anti-money laundering coordination, and joint oversight of licensed firms. Dubai-issued licenses may now be valid across the UAE, subject to case-by-case approval. Firms must still undergocompliance checks before operating in other jurisdictions, as Cointelegraph reported.
UAE’s SCA VARA Crypto Regulatory Partnership♦️The UAE’s Securities and Commodities Authority (SCA) and Dubai’s Virtual Assets Regulatory Authority (VARA) have formally launched a strategic partnership to align the country’s crypto regulatory framework.♦️The agreement builds… pic.twitter.com/KzfWGGDYEF
— XChangeOn (@XChangeon) August 7, 2025
From Declaration to Execution
This step follows a joint declaration made in September 2023, when the two regulators announced their intention to align their frameworks. The new deal brings that intention into practice by creating formal mechanisms for cooperation.
You may find it interesting at FinanceMagnates.com: Hub for CFD Brokers in Dubai Sees Increased Activity in H1 2025.
Legislative Review and International Standards
The SCA has also approved the creation of a Legislative Review Committee. The committee will work with VARA to review and update the country’s crypto laws. The aim is to keep local regulations aligned with international standards.
Further Coordination Across the UAE
VARA said that discussions are continuing with other UAE regulators, including the Abu Dhabi Global Market. The broader goal is to improve coordination and consistency in the supervision of digital asset activities.
This article was written by Tareq Sikder at www.financemagnates.com.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments