VARA’s CEO Proposes Cost-Sharing Model to Support Small Crypto Businesses

VARA’s CEO Proposes Cost-Sharing Model to Support Small Crypto Businesses


Matthew White, the CEO of Dubai’s Virtual Asset Regulatory
Authority (VARA), has voiced intentions to alleviate regulatory pressures on
smaller cryptocurrency entities. Speaking at a regulatory panel during the
Paris Blockchain Week, White acknowledged the imperfections in current crypto
regulations and emphasized the need for improvements, particularly to support
smaller players in the industry.

White highlighted the significant financial strain
associated with regulatory compliance, particularly for smaller businesses
lacking adequate resources. He expressed VARA’s focus on exploring
solutions to mitigate these challenges, aiming to create a regulatory
environment that accommodates all participants.

Matthew White, CEO of VARA, Source: LinkedIn

Among the proposed measures is a concept where larger
players in the crypto space could provide support to smaller entities by
shouldering a portion of their compliance costs. This model would allow smaller
businesses to enter the regulated ecosystem without facing prohibitive
compliance expenses.

“The cost of compliance is borne by the larger systemic
players, and this allows the smaller players to come into the ecosystem, be
regulated, but also not have to suffer the same sort of level of costs of
compliance that we’ve got,” explained White.

Prioritizing Industry Dialogue for Adaptive Crypto
Regulations

Furthermore, White emphasized VARA’s focus on innovation
while simultaneously establishing effective regulations. He underscored the
importance of dialogue with industry stakeholders to ensure that regulatory
frameworks remain adaptable to the rapidly growing crypto landscape.

White assumed the role of CEO at VARA last year, succeeding
former CEO Henson Orser. His appointment coincided with VARA’s preparations to
enhance its market operations in response to tightened regulations in the
United Arab Emirates (UAE).

In November 2023, the UAE regulators issued joint guidance
outlining fines and sanctions for unlicensed virtual asset service providers, signalling
a stricter regulatory environment for the crypto industry in the region.

Matthew White, the CEO of Dubai’s Virtual Asset Regulatory
Authority (VARA), has voiced intentions to alleviate regulatory pressures on
smaller cryptocurrency entities. Speaking at a regulatory panel during the
Paris Blockchain Week, White acknowledged the imperfections in current crypto
regulations and emphasized the need for improvements, particularly to support
smaller players in the industry.

White highlighted the significant financial strain
associated with regulatory compliance, particularly for smaller businesses
lacking adequate resources. He expressed VARA’s focus on exploring
solutions to mitigate these challenges, aiming to create a regulatory
environment that accommodates all participants.

Matthew White, CEO of VARA, Source: LinkedIn

Among the proposed measures is a concept where larger
players in the crypto space could provide support to smaller entities by
shouldering a portion of their compliance costs. This model would allow smaller
businesses to enter the regulated ecosystem without facing prohibitive
compliance expenses.

“The cost of compliance is borne by the larger systemic
players, and this allows the smaller players to come into the ecosystem, be
regulated, but also not have to suffer the same sort of level of costs of
compliance that we’ve got,” explained White.

Prioritizing Industry Dialogue for Adaptive Crypto
Regulations

Furthermore, White emphasized VARA’s focus on innovation
while simultaneously establishing effective regulations. He underscored the
importance of dialogue with industry stakeholders to ensure that regulatory
frameworks remain adaptable to the rapidly growing crypto landscape.

White assumed the role of CEO at VARA last year, succeeding
former CEO Henson Orser. His appointment coincided with VARA’s preparations to
enhance its market operations in response to tightened regulations in the
United Arab Emirates (UAE).

In November 2023, the UAE regulators issued joint guidance
outlining fines and sanctions for unlicensed virtual asset service providers, signalling
a stricter regulatory environment for the crypto industry in the region.





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