Crypto regulation is far away. This is no longer a pass-off game between different government bodies: digital assets already have dedicated overseers in many regions.
One of the pioneers in the space is Dubai’s crypto regulator, the Virtual Asset Regulatory Authority (VARA). Vara’s determination is the ability to effectively communicate with guidelines and regulations with crypto companies, according to its older official.
“The set and forget don’t work for crypto, it’s all about feedback and open channels,” said Sean Mchugh, senior director of Market Assurance in the vara. “Since we are exclusively committed to crypto, we are allowed to get a little deeper in the tech and our policies are written for modern times.”
Dubai has become a crypto darling, emerging as one of the preferred options for non-native crypto companies to set up a shop and gain access to the region and more.
“Dubai is seen as a great jump off point. We have seen (crypto) companies from Europe and beyond coming here and the reverse is true, we see many companies from the rest of Asia come here. It’s a strategic move and the regulation of clarification helps them,” Mchugh added.
Tokenization and more
True tokenization in the world, or RWA, gets a lot of traction in Dubai and for good reason. The region’s real estate agency, the Dubai Land Department (DLD), Recently a pilot started To register and transfer the blockchain -owned works. The tokenization initiative was enlarged by the vara and the Dubai Future Foundation (DFF).
Real-estate integration with the blockchain can strengthen the massive city-owned market. The DLD expects the tokenized real-estate to jump to 60 billion Dirham ($ 16 billion) by 2033, worth 7% of total Dubai-owned transactions.
Mchugh, who is talking to CoinDesk in Vara’s office, believes real estate is just the beginning.
“It’s very popular, not only in Dubai, but beyond. Dubai has the ability to faster things,” he said, adding that they also see many important metal tokenization projects.
The vara, with a serious regulatory approach, is closely watching the space, he said.
“Whether it’s real estate, precious metal, or some other owner, a big part of my focus on it is customer protection. So, especially when you get to the fractionalization it brings to many new capital and retail investors, which needs to be protected,” he said.
“We ask a lot of questions when it comes to RWA projects, what’s the token? What exactly do I have?
Cooperation of interagency
Donald Trump administration is openly promoting for crypto in the US and to Opinion of industry leaders Pushed to other regions to follow the suit. That is not necessary the case in the UAE, especially Vara, created three years ago, even before the US president became an open proponent of digital assets.
Mchugh believes that interagency cooperation will be the key to global crypto regulation, but does not see any particular agency leading the charge.
“I don’t think we’ll find some super regulators, regional or otherwise. I think every agency is focused on its own customers,” he said, adding that Memoranda of Understanding (MOU) and open communication between body controls are the way to successfully guard the crypto.
If it were to replace, the web3 or RWA, the Crypto’s future in Dubai looks bright and Mchugh, who is the former chief citadel obedience officer, said he said one of the main reasons for that was the city’s pro-business and start-up nature.
