Dubai’s cryptocurrency landscape is currently undergoing a period of transformation, but smaller players are struggling with the heavy regulatory burdens. Matthew White, the CEO of Dubai’s Virtual Asset Regulatory Authority (VARA), is determined to change this situation.
During the Paris Blockchain Week, White revealed his ambitious plans to alleviate the compliance costs that are burdening small cryptocurrency entities. Speaking at a regulatory panel discussion, White acknowledged that the current crypto regulations are not perfect and expressed his desire to improve them.
One of the proposed plans is to reduce the financial burdens faced by smaller crypto businesses. According to White, becoming regulated is an expensive process that many people cannot afford. The VARA official stated that they have personally experienced this issue and are actively seeking solutions.
White suggested a potential solution where larger participants could support smaller ones by “hosting” them. Under this structure, the costs would be borne by entities with greater resources. White emphasized that this approach aligns with VARA’s goal of promoting innovation while establishing effective regulations. He added that VARA is actively engaging with the industry to better understand its needs, acknowledging that the crypto landscape evolves rapidly and regulators cannot claim to know everything.
White took over as CEO of VARA last year, replacing former CEO Henson Orser. His appointment was part of VARA’s preparations to enhance its market operations. This leadership change occurred as the United Arab Emirates implemented stricter rules and imposed fines on unlicensed virtual asset service providers. In collaboration with UAE regulators, VARA released joint guidance for VASPs, outlining fines and sanctions for non-compliance.
For more information on Dubai’s crypto scene, check out our Crypto City: Guide to Dubai magazine.