Dubai Regulator Wants to Lower the Cost of Compliance for Small Crypto Firms

The leader of Dubai’s digital asset regulatory body expressed his intention to discover methods for reducing costs for small cryptocurrency businesses.

Matthew White, the CEO of VARA in Dubai, shared during Paris Blockchain Week on Wednesday that he’s exploring several options to make the regulatory framework more inclusive. One of these initiatives involves finding a solution for the high compliance costs faced by smaller entities.

In simple terms, VARA holds the sole authority to regulate digital assets within the emirate of Dubai, which is one of seven emirates that comprise the United Arab Emirates. Last year, Dubai introduced regulations for cryptocurrencies that were broadly accepted by the crypto industry. Nevertheless, some companies expressed concerns about potential high costs.

The regulations require companies, including crypto exchanges such as Crypto.com, Deribit’s Dubai branch, and crypto hedge fund Nine Blocks, to obtain permission to carry out business in the country.

White explained that not everybody has the means to obtain regulation, which is a common observation. Therefore, we are exploring options where bigger market players could sponsor or host smaller ones instead.