The United Arab Emirates is moving closer to a unified regulatory framework for cryptocurrencies after the SCA and the Dubai VARA announced a formal partnership. The agreement aims to harmonise crypto oversight nationwide while maintaining robust compliance and security standards.

Mutual recognition of virtual asset service provider (VASP) licences forms the partnership's core. However, automatic passporting between emirates will not be permitted.

Each VASP licensed by one authority will undergo coordinated regulatory assessments, including Anti-Money Laundering and operational checks, to ensure national standards are upheld.

The collaboration promises more precise regulation, faster market entry, and reduced duplication for crypto firms operating in the UAE. Officials highlight the deal as a milestone that strengthens the country's position as an innovation-focused and credible crypto hub.

Ongoing talks with regulators like Abu Dhabi Global Markets support the UAE's broader strategy for regulatory alignment and cross-border cooperation in virtual assets.