Dubai's VARA Official Claims Balanced Licensing Approach
A senior official insists Dubai's crypto regulator has achieved the right timing for licenses, despite perceptions of being overly lenient.
Dubai’s Virtual Assets Regulatory Authority (VARA) believes it has achieved the right licensing timeframe for crypto-related applicants, according to senior official Sean McHugh. He countered any notion that VARA may be viewed as excessively lenient as a regulator in the crypto space.
Key Points:
- VARA is working to establish itself as a leading crypto hub alongside jurisdictions like Singapore and Hong Kong.
- McHugh stated, "It’s like the story of Goldilocks and the Three Bears; we have found the right balance, neither too fast nor too slow". (Translation: "Es como la historia de Ricitos de Oro y los Tres Osos; hemos encontrado el equilibrio correcto, ni demasiado rápido ni demasiado lento.")
- As VARA continues to grant full regulatory approvals to exchanges like OKX, Crypto.com, and Binance, their process involves complex regulatory discussions lasting several months.
Additionally, VARA has updated its marketing regulations for virtual assets and imposed fines on non-compliant entities, emphasizing their commitment to responsible licensing and consumer protection.
McHugh shared optimism about increasing institutional participation in the crypto space, indicating that events like the Future Blockchain Summit will likely see more financial executives from major firms such as BlackRock and JP Morgan in the coming years.
