The head of Dubai’s cryptocurrency regulator, Henson Orser, has made the decision to step down from his role, leaving many surprised and wondering about the future of the Virtual Assets Regulatory Authority (VARA). Orser, who spearheaded the agency’s web3 drive, is leaving to pursue new interests as the specter of domestic fines on digital asset companies for rule breaches loom.
A Planned Transition
According to reports, Orser’s departure will be a smooth and planned transition, as he will continue to work as a consultant throughout the process. In his place, the role will be taken over by Matthew White, who has previous experience as a consultant for VARA and as a partner at PwC.
Details about this leadership change and the future direction of VARA are currently unclear, as no formal statement has been released by White or the regulatory authority.
Sanctions on Cryptocurrency Companies
Simultaneously, the financial regulator has revealed plans to fine over 12 cryptocurrency companies on November 19 for breaching local guidelines. However, it seems that major exchanges such as Binance, OKX, and ByBit will not face sanctions and will instead be given time to comply. These exchanges already hold partial licenses in the country and have plans to fulfill the remaining requirements in the near future.
VARA’s decision not to fine these exchanges could be attributed to their commitment to compliance and a strategy to avoid stifling the growth of major companies within the region. The regulatory authority aims to enhance financial compliance among firms to protect investors from fraudulent activities.
Despite the leadership change, the focus of VARA remains steadfast in transforming Dubai into a web3 hub. This is evident in their decision to retain Orser and emphasize a smooth transition. Dubai has already achieved significant success in digital asset innovation, attracting more firms seeking a VARA license to take advantage of increasing adoption in local and regional markets.
Policy watchers speculate that VARA’s efforts to improve financial compliance and regulation are part of a broader plan to remove Dubai from the Financial Action Task Force’s gray list. Turkey also has plans to introduce comprehensive crypto regulations in the coming year to lift its own status from the gray list.
