On September 5, 2024, the Securities and Commodities Authority (SCA), represented by Her Excellency Dr. Maryam Alsuwaidi, and Dubai’s Virtual Assets Regulatory Authority (VARA), represented by its CEO Mr. Matthew White, signed a cooperation agreement. Under this agreement, Virtual Asset Service Providers (VASPs) operating in or intending to serve Dubai must obtain a license from VARA and are automatically registered with the SCA to operate across the wider UAE. Hence, for VASPs seeking to operate in other Emirates, licensing by the federal regulator, the SCA, is required.

This means that:
- VASPs wishing to operate in Dubai must obtain a license from VARA.
- VASPs intending to operate in other Emirates must secure a license from the SCA.
- VASPs licensed by VARA in Dubai are automatically registered with the SCA, enabling operations throughout the UAE.

This cooperation agreement aligns with the UAE government’s directives to regulate the local virtual assets sector and ensures compliance with anti-money laundering regulations, as well as laws against terrorism financing and illegal organizations, boosting investor confidence.

The agreement further outlines mutual supervision mechanisms of VASPs, penalty and fine imposition, the exchange of information and statistics, and cooperation in employee training and qualification, as per Cabinet Decisions No. 111 and 112 of 2022.