The crypto industry in Dubai is experiencing a transformative shift. Crypto industries and investors are enjoying the benefits of this shift currently ongoing in the sector. However, in the midst of it all, there has been a heavy regulatory burden on smaller exchanges in the region. In this vein, Dubai’s Virtual Asset Regulatory Authority (VARA) CEO Matthew White is trying to change the situation.
Dubai regulator wants to address regulatory burdens on small exchanges
Speaking at the recent Blockchain week in Paris, White mentioned that he is putting things into place to ensure that these burdens are addressed. He noted that these small exchanges face a lot of compliance costs and he wants to change that. He highlighted that regulation in the crypto space is not easy, however, he is looking to improve it.
During the panel discussion at the Paris Blockchain Week, White noted that one of the moves he’s trying to make is to reduce the financial burden of these small exchanges. “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,” White said.
Potential solutions and boosting innovation
The Dubai regulator said that going through the regulatory process is money-consuming for smaller exchanges and they lack the capacity. He explained that the regulator had seen cases of issues like this happening, leading them to look for solutions to prevent it. However, he added that they are working on a fix that could potentially help these small exchanges. The Dubai regulator said that the bigger exchanges could host smaller exchanges, this way, the regulatory costs would be shouldered by entities with more capacity.
He explained that the bigger entities bear the responsibility of compliance, and this helps smaller players who would get regulated without suffering the same financial burden as the big entities. The regulatory official also described this model as one that would help boost innovation that would follow the proper regulatory channels. The VARA CEO said they are still in discussions with the market participants to understand the model.
Michael White assumed the position of CEO at VARA last year, replacing its previous boss Henson Orser. The agency noted that White’s appointment was in line with its vision to boost full-scale market operations. The change came at a time when the United Arab Emirates (UAE) ramped up its rules and ordered unlicensed exchanges to pay fines.
