Dubai' s crypto scene is changing fast, but small players are struggling with heavy regulatory burdens. Matthew White, CEO of Dubai's Virtual Assets Regulatory Authority (VARA), is on a mission to change that. Discover his revolutionary strategy unveiled at Paris Blockchain Week.
An innovative approach to regulation
Matthew White, in his groundbreaking approach, recognizes the shortcomings of current cryptocurrency regulations. In a discussion at Paris Blockchain Week, he stressed that these regulations are not perfect and thathe is actively looking for ways to improve them. His main objective is to reduce compliance costs, which weigh disproportionately on small businesses in the sector. Aware that the regulatory process represents a costly exercise, he is looking for solutions to make it more accessible to smaller players.
Cost-sharing to encourage entry by small players
To solve this problem, Matthew White proposes an innovative model in which large industry players act as hosts for smaller entities. In this structure, compliance costs would be borne by entities with greater resources. This would enable smaller companies to enter the crypto ecosystem, be regulated, while avoiding the financial burden associated with regulatory compliance.
Ongoing commitment to innovation and regulation
Matthew White insists that thinking about cost sharing is only part of VARA's regulatory journey. The ultimate goal is to create a regulatory environment that fosters innovation while protecting investors and ensuring market stability. VARA is therefore committed to staying in tune with the industry, aware that the cryptocurrency landscape is rapidly evolving. By continuing to collaborate with industry players, the regulator aims to better understand the needs and challenges faced by the industry, in order to adapt its regulations in an agile and efficient manner.
