The Dubai Virtual Assets Regulatory Authority has issued a total of 36 full licenses to entities operating within the virtual assets sector.
Matthew White, the CEO of the Dubai Virtual Assets Regulatory Authority, stated in an interview with Emirates News Agency (WAM) that there are currently several hundred entities at various stages of the licensing process. The authority continuously receives applications from global entities looking to expand into Dubai, and it collaborates with them to streamline procedures and help them understand regulatory frameworks to ensure full compliance. He noted that the ecosystem includes over 400 registered entities engaged in activities ranging from self-trading to providing blockchain technology services and other supportive functions.
White highlighted a partnership with the Dubai Land Department set for early 2025, aimed at launching an innovative regulatory initiative that permits “fractional ownership” of properties through tokenized assets. He explained that this model allows individuals to own a fraction of a property without needing to purchase an entire asset, thus broadening investment opportunities in real estate for those unable to afford full property ownership and enhancing Dubai’s reputation as a global center for real estate innovation and digital assets.
He also revealed that the pilot phase of the project successfully listed two properties under the fractional ownership system, involving approximately 300 investors, 70% of whom had never owned real estate in Dubai before. This demonstrates the project’s capability to attract new segments of local and international investors. White anticipates the future listing of real estate tokens on trading platforms, allowing for easier trading and making these assets more accessible to the public.
Additionally, the authority is currently working on new pilot projects that include gold and decentralized finance products, which represent a digital alternative to traditional financing and are currently under review.
The Dubai Virtual Assets Regulatory Authority is committed to creating a comprehensive regulatory environment that fosters innovation while ensuring the highest standards of legal security and investor protection.
He pointed out that the main tasks of the authority include establishing a supportive and stimulating regulatory framework, promoting Dubai as a global hub for virtual assets, enhancing cooperation with both local and international entities, and developing smart regulatory tools to ensure compliance among operating entities, as well as contributing to the stimulation of the digital economy.
White emphasized that the Dubai Virtual Assets Regulatory Authority does not operate in isolation from other regulatory agencies in the country but coordinates and collaborates with various stakeholders, including the Securities and Commodities Authority, the Central Bank of the UAE, Dubai Police, the Department of Economy and Tourism, and other governmental institutions.
Regarding oversight and enforcement, White mentioned that the authority adopts a comprehensive system for supervision and inspection, starting with the implementation of clear and simplified regulatory guidelines. This includes a detailed marketing manual featuring visual examples that help companies understand what is permissible to promote and what is not. The authority also requires companies to provide detailed data, including customer numbers, types, executed transactions, and funding sources, which are analyzed using both automated and manual tools to ensure compliance.
He stated that there is also a specific enforcement pathway, which involves tracking violations that supervisory teams might uncover and referring them to the enforcement team for actions such as issuing warnings, imposing fines, or revoking licenses, indicating that they monitor and address any unlicensed activities within the emirate.
The authority employs an “Horizon Scanning” system to detect any unauthorized activities taking place online or through other media, subsequently taking legal action against violators, including shutting down operations and confiscating returns if potential harm to the market is verified.
White discussed the authority’s future legislative strategy, stating that it is a flexible regulatory body with experimental regulatory enabling programs. These programs allow the authority to understand the risks associated with new business models and establish preliminary regulatory frameworks for trial under its direct supervision before integrating them into the regulatory system.
He explained that the establishment of the authority in 2022 marked a significant strategic step in Dubai’s economic vision D33, which aims to double the emirate’s economy over the next decade. He noted that the creation of the authority as the world’s first specialized regulatory body for virtual assets is not only to ensure an appropriate regulatory environment but also to serve as a key driver for the growth of this sector, instilling confidence in investors and encouraging specialized entities to make Dubai their base.