Dubai’s VARA, DET to establish market assurance standards for virtual assets

Image courtesy: Just_Super/ Getty Images

Dubai’s Department of Economy and Tourism (DET) and Virtual Assets Regulatory Authority (VARA) have signed a memorandum of understanding (MoU) to offer joint services to support the virtual assets (VA) sector.

The MoU outlines a framework for collaboration to deliver effective and synchronised VA market assurance across Dubai, covering:

Public/marketplace: Customer care and complaints

Business: On-site inspection and enforcement

Business: VASP registration and licencing

G2G + G2B + G2C: Education, training and knowledge sharing

#Dubai’s Department of Economy and Tourism (DET) and Virtual Assets Regulatory Authority (VARA) have signed a Memorandum of Understanding (MoU) for the provision of unified city-wide services to enable the Virtual Assets sector. https://t.co/UQTxLMVnH2 pic.twitter.com/7qX2y8CJrh

— Dubai Media Office (@DXBMediaOffice) August 10, 2023

Highlights of  the DET-VARA collaboration

DET and VARA will deploy end-to-end processes at scale to ensure market-leading consumer protection, and security standards across mainland and free zones, even as the VA ecosystem commences its transition to the full regulatory purview of VARA.

The MoU’s scope further strengthens VARA’s commitment to achieving full transparency and market conduct adherence across virtual asset service providers licenced to operate in Dubai, so that the reputation and credibility of the UAE as the preferred hub for the global sector are automatically established.  

As per the MoU, VASPs will benefit from seamless workflow processes between both parties with DET adding VARA activities to its system for virtual assets licence issuance.

DET will undertake robust inspections and support VARA with in-situ enforcements including deploying penalties such as suspensions or revocations in cases of proven negligence or non-compliance with VARA rules, in addition to business-as-usual application renewals for VASPs that meet VARA’s requirements in full. VARA will be included on DET’s E-Permit system, which will enable one-touch point approvals on VA events and both parties will actively collaborate on awareness campaigns for VARA product and licencing updates, as well as data sharing protocols and legacy onboarding. 

This partnership between VARA and DET will also seek to leverage the Dubai Corporation for Consumers Protections & Fair Trade (DCCPFT) department at DET by upgrading it with specialist VA know-how from VARA, with the aim to provide a transparent, seamless customer experience.   

The parties will collaborate on marketing campaigns designed to raise general awareness of consumer protection and developments in the virtual assets sector including communicating consumer protection information and advice.

DET, in coordination with VARA, will also publish relevant notices and warnings, including penalty notices and consumer protection advisories, on its website and the DCCPFT website.