VARA Marks a Regulatory Leap in Dubai's Crypto Landscape: An Interview with Deepa Raja Carbon
Summary:
The Virtual Assets Regulatory Authority (VARA) has introduced detailed regulations for virtual asset service providers to bolster Dubai's position as a global hub for crypto-related activities. In an interview with Cointelegraph, VARA's Vice Chair and Managing Director, Deepa Raja Carbon, highlighted the authority's agile and cooperative approach. She also discussed the challenges faced during the process and underscored VARA's established robust, resilient, and responsive regulatory environment adhering to market fluctuations.
As one of the earliest global regulatory entities, the Virtual Assets Regulatory Authority [VARA] has introduced comprehensive regulations for crypto assets, bolstering Dubai as a hub for crypto-oriented activities. VARA's establishment in March 2022 was designed to position the Emirate as a global epicenter for virtual assets and related services.
In February of the same year, VARA launched a detailed regulatory framework targeting virtual asset service providers (VASPs), which is only applicable within Dubai. This framework comprises four mandatory rulebooks and additional books specific to different VASP activities. It also provides guidelines for marketing, advertising, and promotional activities undertaken by VASPs.
Deepa Raja Carbon, VARA's Vice Chair and Managing Director, spoke to Cointelegraph about her perception of emerging technologies and the key challenges the regulatory authority faced while formulating these crypto asset frameworks. When asked about VARA's strategy towards virtual assets and what set them apart from other global regulators, Raja attributed their success to their agility, cooperative nature, and prompt response to market demands.
According to Raja, VARA operates under a philosophy that emphasizes finding a "universal threshold of convergence rather than a minimum baseline", which will facilitate growth and scalability across the entire ecosystem. She emphasized that VARA aims to redefine how regulators interact with the market, dynamically adjusting according to market fluctuations to establish a robust, resilient, and responsive regulatory environment, or the "3R-Pyramid".
Raja admitted initial challenges in drafting guidelines for a fledgling industry like virtual assets. She noted that the regulator meticulously examined existing frameworks and thoroughly understood the challenges faced by other regulatory entities. During this process, the regulatory authority followed a consultative approach, collaborating with diverse stakeholders including industry leaders, innovators, peer regulators, legislators, and the general public, to ensure inclusivity.
Raja conveyed to Cointelegraph that in partnership with Dubai's established entities like DET and DFZC for Mainland and various free zones, VARA has developed a seamless and adaptable framework.
With its crypto regulations, VARA seeks to place Dubai on the crypto industry's radar, especially as more Eastern countries are eyeing opportunities to attract virtual asset businesses. Hong Kong has also made significant progress in crypto regulation by 2023, implementing a range of regulatory guidelines for crypto platforms targeting retail and institutional clients.
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Published At
11/7/2023 11:04:00 AM
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