Dubai’s Department of Economy and Tourism (DET) has announced a collaboration with the Virtual Assets Regulatory Authority (VARA) to strengthen Dubai’s position in the global Virtual Assets (VA) sector. The partnership aims to provide integrated services across the city and ensure the synchronized regulation and support of the VA market.
The collaboration comes in the form of a Memorandum of Understanding (MoU), which establishes a framework for cooperation between DET and VARA. Together, they will focus on various activities including customer care, addressing public complaints, on-site inspections, enforcement measures for businesses, registration and licensing procedures for Virtual Asset Service Providers (VASPs), as well as educational initiatives for government entities, businesses, and consumers.
By joining forces, DET and VARA will implement comprehensive processes on a large scale to maintain high standards of consumer protection and security in Dubai. This applies to both the mainland and free-zone areas of the city, marking a significant moment as the VA ecosystem transitions into VARA’s regulatory oversight.
The partnership aims to create a solid foundation that enhances Dubai’s contribution to the global New Economy landscape. It reinforces the city’s reputation as a secure and appealing global hub for VASPs, operators, and customers. VARA’s commitment to transparency and market conduct standards among VASPs operating in Dubai will further strengthen the UAE’s status as the preferred hub for the global VA sector.
Under the MoU, VASPs will benefit from streamlined processes facilitated by DET, which will integrate VARA’s activities into its system for issuing virtual asset licenses. DET will conduct rigorous inspections and provide support to VARA in implementing on-site enforcement actions. This may include penalties such as suspensions or revocations for instances of proven negligence or non-compliance with VARA regulations.
DET will also handle the regular renewal of applications for VASPs that meet VARA’s requirements. VARA will be seamlessly integrated into DET’s E-Permit system, simplifying the approval process for virtual asset events. Both parties will collaborate on awareness campaigns, communicating updates on VARA’s product and licensing, as well as sharing data protocols and onboarding procedures.
Aligned with the Dubai Government’s drive to enhance business and market services, this partnership will also extend to the Dubai Corporation for Consumer Protections & Fair Trade (DCCPFT) division at DET. By leveraging VARA’s specialized knowledge, the collaboration will enhance the DCCPFT’s capabilities, optimize government resources, and provide a transparent and seamless experience for consumers.
DET and VARA will join forces on promotional campaigns aimed at increasing general awareness about consumer protection and advancements in the virtual assets sector. They will disseminate valuable information and guidance on consumer protection through notices and advisories, including penalty notifications, on their websites.
This MoU reflects Dubai’s strategic pursuit of an advanced regulatory, licensing, and operational framework for its future economy. VARA’s collaboration with local and global stakeholders contributes to establishing a transparent and adaptable ecosystem for the emerging realm of virtual assets. The partnership aligns with Dubai’s Economic Agenda D33, supporting key government initiatives that emphasize pro-business strategies, user-friendly asset navigation, and robust regulations.
