Dubai’s Virtual Assets Regulatory Authority (VARA) plans to increase its workforce by 4 times in the coming months to help deal with hundreds of license applications. This is happening after the country brought new rules to attract major players in the industry to the Middle Eastern financial centre. According to a report by Reuters, the VARA is expected to handle about 300 new licence applications throughout this year. Meanwhile, the company will start issuing final permits in June. However, this will be done only for organisations having prior authorisation as part of Dubai’s minimum viable product licensing rules and regulations.
VARA Chief Executive Officer Henson Orser, who took over the role last month, said, “It has been a mad sprint.” He further added that employees should be careful as the organisation has created a lot of work for them when it comes to supervision and enforcement.
The city of Dubai established VARA ins March 2022 to attract the largest crypto firms in the country by implementing multiple crypto-friendly policies. Initially, the crypto regulatory organisation had only two employees, which has now increased to about 20 staff members.
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In the recent past, several UAE officials have encouraged virtual assets, saying that they are goldmines for economic growth. Some of these individuals have also worked in the past to ensure the diversification of crypto-related strategies in the country.
Earlier, VARA introduced a final set of frameworks including rules and regulations to help govern the digital asset platforms. This will allow such companies in getting a full regulatory license in the nation.
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In the wake of the crypto exchange FTX meltdown and several other major scandals in the crypto industry have pushed many countries to work on comprehensive rules required to govern the industry. And the United Arab Emirates is one of the first countries to provide multiple rules to ensure smooth business functioning in the crypto market, according to a report by Bloomberg.
The new rules are aimed at encouraging global organisations to establish their company wings and branches in the UAE, which is expected to result in the growth and expansion of the sector in the local market. Commenting on the matter, Orser, said, “We think the rules will stand head and shoulders above the rest.”
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