The Birth of VARA
Dubai has decided it’s not just going to sit quietly in the corner while the rest of the world figures out cryptocurrency. Enter the Virtual Assets Regulatory Authority (VARA), a regulatory body that burst onto the scene in March 2022, aiming to transform Dubai into a global hotspot for virtual assets. Think of it as Dubai’s flashy new club for digital currencies, where the entrance rules are carefully crafted to keep the riff-raff out while letting the cool kids in.
Regulatory Framework: The Rulebooks Unveiled
In February, VARA rolled out a comprehensive regulatory framework for virtual asset service providers (VASPs). This regulatory playbook isn’t just a one-size-fits-all; it includes four compulsory rulebooks alongside activity-specific ones that govern how VASPs can operate within Dubai. With an additional rulebook dedicated to marketing, advertising, and promotions for VASPs, it’s like VARA has created an entire library instead of just a single book.
Inside the Mind of VARA: Insights from Deepa Raja Carbon
To gain a deeper understanding of VARA, Cointelegraph spoke with Deepa Raja Carbon, the managing director and vice chair at VARA. What she revealed was enlightening. VARA’s approach is characterized by speed and adaptability, claiming to dance to the rhythm of the market rather than dragging its feet. Carbon emphasizes that their mission is to find a ‘highest point of convergence’ in regulatory practices. Essentially, they want to not just keep up with the industry but elevate the entire ecosystem to a new level of success.
Challenges on the Path: Crafting a Nascent Framework
Of course, not every journey is smooth, especially when you’re dealing with the wild west of digital assets. Carbon candidly shares that establishing a framework for such a fledgling industry is no walk in the park. However, rather than inventing the wheel from scratch, VARA took a good look at existing frameworks around the globe, cherry-picking insights and lessons from those that preceded them.
The Collaborative Dance: Listening to Stakeholders
VARA isn’t just a top-down regulatory authority; it’s engaging with various stakeholders including industry leaders, innovators, and even the public. After all, what’s the point of regulations if they don’t resonate with the very folks they affect? Carbon highlights that the entity’s consultative approach aims to ensure that the guidelines they establish reflect real market needs and circumstances. It’s like hosting a potluck where everyone’s input is welcome, and the result is a deliciously unified framework.
The Bigger Picture: Dubai as a Global Hub
With its ambitious crypto regulations, VARA aims to position Dubai as a leading destination for digital asset businesses. It’s not just about keeping ahead; it’s about setting trends that other regions, like Hong Kong, are eager to follow. In a world where every country seems to be vying for the digital goldmine, VARA’s plans signal Dubai’s intent to wear the crown.
+ There are no comments
Add yours