Dubai virtual asset regulator wants to lift burden on small crypto firms

Matthew White, CEO of Dubai’s Virtual Asset Regulatory Authority (VARA), expressed a desire to simplify regulations for smaller cryptocurrency businesses.

During a regulatory session at the Paris Blockchain Week, White acknowledged that current crypto regulations have room for improvement and is exploring potential solutions.

One proposed solution being discussed is to ease the financial strain for smaller cryptocurrency companies. According to White, this is the suggested approach.

“It’s not perfect. There’s a number of things I’m looking at, at the moment, to try and make the regime fit for everybody. One of those is figuring out a way to deal with the costs of compliance for smaller entities.”

The VARA officer expressed that complying with regulations comes with significant expenses and noted that not everyone has the necessary means. White acknowledged this challenge, prompting them to seek potential remedies.

Dubai virtual asset regulator wants to lift burden on small crypto firms

White proposed a solution involving market structures where bigger players could act as hosts for smaller ones. In this setup, the larger entities would bear the costs. White put it simply: “The larger participants would assume the role of hosts, shouldering the expenses for their smaller counterparts.”

“The cost of compliance is borne by the larger systemic players and this allows the smaller players to come into the ecosystem, be regulated, but also not have to suffer the same sort of level of costs of compliance that we’ve got.”

The VARA chief executive added that examining such matters is a crucial aspect of the regulatory process, enabling the creation of rules that foster innovation. The spokesperson emphasized their commitment to maintaining dialogue with the industry in order to gain a deeper comprehension.

“It moves so quickly. We don’t pretend to know everything as a regulator,” he added.

In the previous year, Henson Orser was succeeded as CEO of VARA by White. On November 16th, VARA disclosed that White’s hiring was a step towards readying the company for large-scale market activities.

When the United Arab Emirates strengthened its regulations, imposing penalties on unauthorized virtual asset service providers, a change in leadership occurred.

On November 8, regulatory bodies in the UAE issued a joint statement outlining penalties and consequences for Virtual Asset Service Providers (VASPs) who fail to adhere to the rules.

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2024-04-11 11:40