Dubai has become the world's first jurisdiction with a dedicated virtual assets regulator, and its ambitions are unmistakable. Since its inception in 2022, the Virtual Assets Regulatory Authority (VARA) has sought not just to govern but to catalyse a market poised to become a global growth engine. Matthew White, CEO of VARA, explains how the authority is evolving its regulatory framework to keep pace with rapid innovation while ensuring investor protection and market integrity.

Principles Over Prescriptions: A Flexible Framework

“The world of virtual assets is rapidly evolving, and regulators must keep up with the pace of development and innovation in the industry,” White says. To manage this, VARA has built a regulatory framework around simple yet vital principles: clear, principles-based guidance, activity-specific requirements, and strong, data-driven supervision.

“The idea is to avoid completely rewriting the rules every time the technology changes to make sure the market has clarity, stability and flexibility,” he explains.

Since 2022, VARA has grown into a full-scale regulator overseeing one of the most active virtual asset markets globally. White highlights three key priorities: leveraging technology-enabled supervision, safely scaling innovation through pilots and sandboxes, and fostering stronger global alignment.“We are already testing projects in areas like real-estate tokenisation, and Decentralised Finance (DeFi),” he notes.

“We also follow global standards and collaborate closely with authorities like the UAE Securities and Commodities Authority to create a unified national framework and strengthen cross-border cooperation.”

Innovation Meets Accountability

White is adamant that fostering innovation does not mean lowering standards.“Compliance and innovation aren't opposites. They go hand in hand. Everyone benefits when the rules are clear and designed to enable innovation – investors, consumers, and innovators alike,” he says. VARA's principles-based framework sets clear guardrails while allowing Virtual Asset Service Providers (VASPs) to determine how best to meet those standards.

Flexibility comes with accountability.“When users are at risk or rules are broken, we act quickly,” White explains.“Under our new marketing rules, fines can reach up to Dh10 million, a clear signal of the seriousness that we place on compliance.” Engagement with the industry is central to VARA's approach.

“Every time we update our rules, we open consultations with VASPs, tech experts, and investors. Startups can share feedback, and we listen. We also run workshops and participate in major events like GITEX and TOKEN2049 to stay connected with the ecosystem,” he adds.

Dubai's rise as a virtual asset hub is attracting some of the world's largest players, White explains.“Institutional investors require trusted infrastructure, access to products like derivatives and tri-partite custody arrangements. Having regulated custodians onshore gives them confidence.” Forty VASPs are now fully licensed in Dubai, encompassing major exchanges, broker-dealers, custodians, and startups.

“Industry participants value the clarity of our rules, the trust that comes from strong oversight, and the level playing field that VARA creates,” White says.“But Dubai's success goes beyond regulation. Companies benefit from world-class infrastructure, 100% foreign ownership in many free zones, quick business setup, zero personal income and capital gains tax, and a low 9% corporate tax, often waived for free zone entities. And beyond the business side, Dubai offers an unmatched lifestyle, modern infrastructure, global connectivity, and initiatives like the Golden Visa for tech entrepreneurs.”

Preparing for Tokenised Real-World Assets and AI-Enabled Platforms

White is clear that Dubai is positioning itself beyond conventional cryptocurrencies.“This is already happening. We are moving beyond pilots into real-world implementation,” he says. A prime example is the Dubai Land Department's Property Token Ownership Certificate, which officially links tokenised assets to the land registry.“Our first fully sold-out tokenised real estate project on Prypco Mint involved more than 200 investors from 44 nationalities, and 70% of those were investing in Dubai's property market for the first time,” he notes.

The authority is also expanding into DeFi and AI-powered Web3 platforms.“Earlier this year, VARA became one of the first regulators to licence certain DeFi activities, issuing a DeFi Limited Licence that allows exchange, broker-dealer, and investment services under strict guardrails,” White says.

“Our Pilot Framework allows new products to be tested safely with enhanced reporting and limited client exposure. Recent pilots, such as OTC options and retail derivatives, show how we phase innovation responsibly.”

On governance and tech oversight, White emphasises,“Our Technology & Information Rulebook ensures firms have robust governance in place, from cybersecurity and CISO oversight to smart contract audits and data protection. We are not just regulating today's market – we are preparing for what's next.”

Dubai's VARA, under White's leadership, is carving out a model that combines pro-innovation regulation with strong accountability, attracting global capital, and laying the groundwork for the next generation of digital assets.“Our ultimate goal is clear – to make virtual assets a real, diversified growth engine for Dubai, one that attracts capital, creates jobs, and can compete on the global stage,” White concludes.

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