Dubai crypto regulator admits to the need for affordable regulation

The head of Dubai’s virtual asset regulator recently spoke about how smaller Dubai crypto firms would benefit from affordable fees and a reduction in compliance costs.

Dubai crypto firms that are smaller than their peers reportedly suffer from higher regulatory costs. Matthew White, who heads Dubai’s Virtual Asset Regulatory Authority (VARA), spoke about it in a recent event. The official from the virtual asset regulator, speaking at the Paris Blockchain Week, claimed he wants to improve the city’s crypto regulation.

His words mainly focused on making regulation affordable for small Dubai crypto firms. He said, “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 virtual asset regulator’s CEO noted that smaller firms had to endure larger regulatory costs. Besides, he noted that they were looking for solutions to this issue.

One of the fixes he offered was for smaller firms to come under the ambit of big crypto firms. Moreover, if the larger firms bore the compliance costs, then the smaller firms under them could still undergo without costs.

White said VARA was in touch with Dubai’s crypto industry about the cost-sharing model. Meanwhile, if the model succeeds, it could help crypto firms grow faster. For instance, a small crypto firm could allocate its regulatory budget to innovation and growth. 

Almost a month ago, Dubai enacted a specific law for one of its special economic zones. The UAE, in general, has been proactive with the crypto sector on multiple initiatives and projects.

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