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.
Proposed Measures for Crypto Industry Collaboration on Compliance
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.
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 ofcompliance that we’ve got," explained White.
Dubai's Virtual Asset Regulatory Authority (VARA) is exploring ways to ease the regulatory cost burden for smaller crypto firms.During Paris Blockchain Week, VARA CEO Matthew White discussed potential solutions, including a model where larger entities support smaller ones.
— Satoshi Club (@esatoshiclub) April 11, 2024
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 the former CEO, Henson Orser. His appointment coincided with VARA's preparations to enhance its market operations in response to tightened regulations in theUnited Arab Emirates (UAE).
In November 2023, the UAE regulators issued joint guidance outlining fines and sanctions for unlicensed virtual asset service providers, signaling a stricter regulatory environment for the crypto industry in the region.
This article was written by Tareq Sikder at www.financemagnates.com.
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