VARA Develops Innovative Pilot Projects In Gold And Decentralised Finance To Boost Dubai's Virtual Assets Sector

The Dubai Virtual Assets Regulatory Authority (VARA) has granted 36 full licences to companies in the virtual assets sector. Matthew White, VARA's CEO, shared with Emirates News Agency (WAM) that many entities are progressing through the licensing stages, with new applications from global firms arriving regularly. Over 400 registered entities now operate within this ecosystem, engaging in activities like proprietary trading and blockchain services.

White emphasised VARA's collaboration with the Dubai Land Department, which began in early 2025. This partnership aims to introduce a regulatory initiative for fractional real estate ownership through tokenised assets. This model allows individuals to invest in property shares without buying entire properties, enhancing access to real estate investments.

The pilot phase of this project successfully listed two properties under the fractional ownership framework. It attracted around 300 investors, with 70% being first-time property owners in Dubai. White noted that this demonstrates the project's appeal to both local and international investors. He anticipates that tokenised real estate will soon be available on trading platforms, making these assets more accessible and liquid.

VARA is also exploring new pilot projects involving gold and decentralised finance (DeFi) products as digital alternatives to traditional finance. White stated that VARA is dedicated to creating a fully integrated regulatory environment that supports innovation while maintaining high standards of legal certainty and investor protection.

White outlined VARA's core responsibilities, which include establishing a supportive regulatory framework, promoting Dubai as a global centre for virtual assets, enhancing cooperation with international and local entities, and developing intelligent oversight tools for compliance assurance. The Authority collaborates with other UAE regulatory bodies such as the Securities and Commodities Authority and the Central Bank of the UAE.

On oversight and enforcement, White explained that VARA has implemented a comprehensive supervisory framework. This begins with issuing clear regulatory guidelines, including a detailed marketing rulebook with visual examples for companies. Firms must submit data like customer profiles and transaction records for analysis using automated and manual tools to ensure compliance.

Enforcement Measures

VARA maintains an enforcement track to investigate violations identified by supervisory teams. Actions may include warnings, fines, or licence revocations. The Authority actively monitors unauthorised activities within the emirate. White mentioned that VARA uses a "horizon scanning" system to detect unlicensed operations online or via other media. Legal action can be taken against violators if potential market harm is confirmed.

Discussing future legislative strategies, White described VARA as a flexible regulator running experimental programmes to assess risks from emerging business models. These programmes help establish preliminary regulatory frameworks under direct supervision before full integration into the regulatory ecosystem.

Strategic Milestone

The establishment of VARA in 2022 marked a strategic milestone aligned with the Dubai Economic Agenda D33, aiming to double the emirate’s economy over ten years. As the world's first specialised regulator for virtual assets, VARA was created not only to ensure sound regulation but also to drive sector growth by boosting investor confidence and attracting specialist entities to Dubai.

White affirmed that VARA does not operate alone but coordinates with other UAE regulatory bodies like Dubai Police and the Department of Economy and Tourism. This collaboration ensures comprehensive oversight across various sectors within the emirate.

With inputs from WAM