Cryptographic regulation has traveled a long way. It is no longer a game of passage to several government agencies: digital assets now have dedicated supervisors in many regions.
One of the pioneers in space is Dubai’s cryptographic regulator, the Virtual Assets Regulatory Authority (Vara). According to his high official, what distinguishes Vara is his ability to effectively communicate guidelines and regulation to cryptographic companies.
“Set and Forget does not work for Crypto, these are comments and open channels,” said Sean Mchugh, senior director of the market in Vara. “Since we are focused exclusively on cryptography, it allows us to deepen a bit on technology and our rules are written for the modern era.”
Dubai has become a cryptopharga, emerging as one of the preferred options for non -native cryptographic companies to establish stores and get access to the region and beyond.
“Dubai is seen as a great exit point. We have seen a lot [crypto] European signatures and beyond coming here and the opposite is also true, we see that many companies from Asia come here. It is a strategic movement and regulatory clarity helps them, “Mchugh added.
Tokenization and beyond
The real world token, or RWA, is gaining a lot of traction in Dubai and for a good reason. The Real Estate Agency of the Region, the Dubai Land Department (DLD), recently began a pilot to register and transfer acts of property in the block chain. The tokenization initiative is being promoted by Vara and the Dubai Future Foundation (DFF).
Real estate integration in Blockchain could reinforce the mass real estate market in the city. DLD hopes that the tokenized real estate will jump to 60 billion dirhams ($ 16 billion) by 2033, representing 7% of Dubai’s total property transactions.
Mchugh, speaking with Coindesk at the Vara office, believes that real estate are just the beginning.
“It is very popular, not only in Dubai, but beyond. Dubai has the ability to do things faster,” he said, added that they are also seeing many tokenization projects of precious metals.
Rod, with his agile regulation approach, he is watching the space closely, he said.
“It is already real estate, precious metal or some other asset, a large part of my focus on this is customer protection. Therefore, especially when it reaches the fractionization that it brings in many new capital and retail investors, which must be protected,” he said.
“We ask many questions when it comes to RWA projects, what is the Token? What exactly is what I have? What is the merchandise and who is the liquidity provider?
Collaboration between agencies
The administration of Donald Trump has openly advocated cryptography in the United States and, in the opinion of industry leaders, they pushed other regions to follow their example. That is not necessarily the case in the EAU, especially with a rod, which was created three years ago, long before the president of the United States became an open defender of digital assets.
Mchugh believes that cooperation between agencies will be key to the global cryptography regulation, but does not see any particular agency leading the position.
“I do not think we see some super regulatory, regional or other.
Whether it is exchanges, web3 or RWA, the future of the crypto in Dubai looks brilliant and Mchugh, who was the former Citadel compliance director, said he feels that one of the main reasons is the pro-company nature and the initial nature of the city.
