VARA CEO Aims to Ease Regulatory Burden for Smaller Crypto Firms
Summary:
Dubai's Virtual Asset Regulatory Authority's CEO, Matthew White, seeks to streamline compliance for smaller crypto entities, acknowledging current regulatory imperfections. At Paris Blockchain Week, White proposed a model allowing larger market entities to shoulder smaller ones' compliance costs. White's leadership aligns with VARA's initiative to boost full-scale market operations, amid stricter UAE regulations on unlicensed virtual asset service providers.
The head of Dubai's Virtual Asset Regulatory Authority (VARA), Matthew White, has expressed that aiding smaller cryptocurrency organizations in navigating regulatory hurdles is a priority for the agency. Speaking at a regulatory panel during Paris Blockchain Week, White conceded the existence of imperfections in current crypto regulations, highlighting an ongoing effort to improve these standards. He mentioned that one potential solution involves alleviating financial pressures faced by smaller crypto firms. According to White, the cost of regulatory compliance often proves prohibitive, an issue VARA has witnessed first-hand, prompting it to explore remedial measures.
White went on to propose a potential solution involving a scenario where larger market participants could spearhead smaller entities, absorbing associated costs. He elaborated, "What this allows is for smaller players to become part of the ecosystem and uphold regulatory compliance without being crippled by exorbitant costs."
Further, White expressed VARA's commitment to balancing the fostering of innovation with the development of robust regulations. As part of this commitment, the agency continues to engage with the industry to better understand its rapid evolution and complexities. "Given the speed at which this sector is transforming, no regulator can claim to be omniscient," White stated.
In 2021, White succeeded Henson Orser as CEO of VARA, a change that followed his appointment relating to VARA's plans to escalate full-scale market operations. The leadership transition coincided with the tightening of regulations and the introduction of penalties for unlicensed virtual asset service providers by the United Arab Emirates. On November 8, UAE regulators jointly released a guideline document for virtual asset service providers, outlining penalties and sanctions for non-compliance.
Published At
4/11/2024 11:33:53 AM
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