The United Arab Emirates' Securities and Commodities Authority (SCA) and Dubai's Virtual Assets Regulatory Authority (VARA) have signed a cooperation agreement to streamline the licensing and supervision of virtual asset service providers (VASPs) across the UAE.

Under the agreement, VASPs licensed by VARA in Dubai will be registered by default with the SCA, allowing them to service the entire UAE. However, VASPs seeking to operate in emirates outside of Dubai must still obtain a separate license from the SCA.

The pact covers mechanisms for mutual supervision, including penalty imposition, information exchange, and employee training cooperation. It aims to demonstrate "regulatory cohesion" and foster the growth and stability of the virtual assets sector in the UAE.

VARA's chairman stated that the agreement enables "efficient passportability of regulated services" and provides market risk assurance across the country. The SCA's chairman said the move will boost confidence in the UAE's investment ecosystem and ensure effective Anti-Money Laundering (AML) enforcement.

Source: https://cointelegraph.com/news/uae-regulators-dubai-vasps-service-entire-country

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