Blockchain
Dubai’s Virtual Asset Regulatory Authority (VARA) prepares VASPs for the Global Ecosystem
The UAE has emerged as a hub for virtual asset regulation and Virtual Asset Service Providers (VASPs), beginning with the establishment of Dubai’s Virtual Asset Regulatory Authority (VARA). As the Web3 and crypto sectors expand in the UAE, VARA has increasingly emphasized stringent compliance requirements.
Recently, VARA appointed Sean McHugh as Senior Director of Market Assurance, highlighting their commitment to ensuring that VARA’s licenses adhere to top-tier compliance standards.
In a recent interview with Cryptopolitan, McHugh discussed his role at VARA and the significance of compliance with Dubai’s regulatory body.
McHugh brings extensive experience to VARA, having previously served as Global Chief Compliance Officer at Citadel Advisors, overseeing compliance programs across various financial sectors. He also held senior compliance roles at Goldman Sachs and began his career as a regulator at FINRA. This broad background in both internal compliance and regulatory frameworks made him a valuable addition to VARA.
Differences Between Digital Asset and Traditional Finance Compliance
When asked about the differences between compliance in digital assets and traditional finance, McHugh noted, “In my career, I’ve seen traditional finance evolve from being unregulated to a fully regulated sector globally. In contrast, the digital assets space is still developing, with technology and regulatory frameworks continuously adapting.”
He pointed out that technology and compliance programs are more intertwined in the virtual asset space compared to traditional finance.
Why VARA?
McHugh was drawn to VARA because it is the first regulator solely dedicated to virtual assets. He explained, “Dubai is leading the development of a global digital finance ecosystem. VARA’s proactive and engaging approach sets it apart from other regulators.”
He noted that VARA focuses exclusively on virtual assets, diving deeply into compliance details for VASPs, especially regarding customer protection, AML measures, and financial stability. Despite this focus, VARA’s compliance standards are aligned with the highest international norms.
The Importance of VASP Passporting
The concept of ‘passporting,’ initially used in traditional finance to describe the cross-border provision of services, is now being adapted for VASPs. McHugh emphasized VARA’s commitment to facilitating cross-border operations for VASPs by engaging with international regulators, sharing best practices, and forming committees. He noted, “We want VASPs to operate seamlessly across jurisdictions while ensuring they meet rigorous AML standards and customer protections.”
Stringent Compliance Requirements
VARA seeks robust governance models and strong compliance cultures. McHugh described the licensing process as demanding, with high standards set for VASPs. He stated, “We aim for our licenses to have real significance, which means that VASPs must meet rigorous standards, and a lot of the responsibility falls on them.”
He noted that VARA’s process involves thorough scrutiny, including questions about plans, scalability, cybersecurity strategies, and financial health. VASPs must be committed to compliance and ready to adapt if their submissions become outdated.
The Future of VASP Ecosystem and DeFi
McHugh highlighted VARA’s proactive engagement with DeFi platforms. He explained, “DeFi platforms are approaching us early to understand how VARA views their models and activities. We are ready to facilitate their regulation and licensing, with many already implementing technologies such as AML guardrails and KYC applications.”
In summary, VARA’s approach combines rigorous compliance with proactive engagement, positioning the UAE as a leader in virtual asset regulation as the sector continues to evolve.
Source: cryptopolitan.com
The post Dubai’s Virtual Asset Regulatory Authority (VARA) prepares VASPs for the Global Ecosystem appeared first on HIPTHER Alerts.
Blockchain
LCT Secures VARA In-Principle Approval, Defining Its Role in Dubai’s Crypto Landscape
Blockchain
Bybit One-Click Buy Offers a Winning Chance in First-Time Deposits Lucky Draws
bybit lucky
Blockchain
Blocks & Headlines: Today in Blockchain (BlackRock, Plume, SEALSQ, Hedera, Deutsche Bank, KuCoin)
Blockchain technology continues to drive innovation across industries, reshaping finance, infrastructure, and philanthropy. Today’s news roundup explores exciting developments in blockchain ETFs, tokenization funding, quantum-resistant chips, public blockchain initiatives, and impactful social projects. Here’s a deep dive into the latest blockchain headlines:
BlackRock ETF Embraces Blockchain with First Muni Bond Purchase
BlackRock’s blockchain-focused ETF has made its first foray into municipal bonds, signaling increased confidence in integrating blockchain technology with traditional finance. The ETF’s strategic investment demonstrates how blockchain can enhance transparency and efficiency in bond markets.
By tokenizing municipal bonds, BlackRock aims to simplify trading and settlement processes while reducing associated costs. This development underscores the growing role of blockchain in transforming financial instruments and fostering greater market accessibility.
Source: Yahoo Finance
Plume Secures Funding for Tokenization Platform
Blockchain fintech company Plume has raised significant funding to advance its tokenization platform. The company’s innovative approach enables businesses to convert real-world assets into digital tokens, streamlining asset management and unlocking liquidity.
Tokenization is rapidly gaining traction as a game-changer in sectors such as real estate, art, and commodities. Plume’s success reflects a broader trend of investment in blockchain solutions that bridge the gap between traditional assets and decentralized technologies.
Source: Fortune
SEALSQ and Hedera Partner for Quantum-Resistant Blockchain Chips
SEALSQ and Hedera have announced a groundbreaking collaboration to develop quantum-resistant chips designed to secure blockchain infrastructure. These advanced chips will provide robust protection against future quantum computing threats, ensuring the integrity of blockchain networks.
As quantum computing capabilities evolve, safeguarding blockchain ecosystems becomes increasingly critical. This partnership highlights the importance of proactive measures in maintaining the resilience and trustworthiness of decentralized systems.
Source: The Quantum Insider
Deutsche Bank’s Public, Permissioned Blockchain Initiative
Deutsche Bank’s Layer 2 blockchain solution is set to go public and operate as a permissioned network, according to its tech partner. This initiative aims to strike a balance between accessibility and security, leveraging blockchain to streamline financial services and enhance operational efficiency.
The decision to adopt a public, permissioned model reflects a growing trend among enterprises seeking to harness the benefits of decentralization while maintaining control over sensitive data. Deutsche Bank’s approach could serve as a blueprint for other financial institutions exploring blockchain adoption.
Source: CoinDesk
KuCoin’s “Light Up Africa” Initiative Brings Hope to Thousands
Cryptocurrency exchange KuCoin has made a significant impact through its “Light Up Africa” donation ceremony in Ghana, benefiting 36,000 children across the continent. The initiative combines blockchain technology with philanthropy to address energy poverty and support education.
By leveraging blockchain for transparency in charitable contributions, KuCoin sets an example of how the crypto industry can drive meaningful social change. The project demonstrates the potential of blockchain to empower communities and foster sustainable development.
Source: PR Newswire
Industry Implications and Key Takeaways
Today’s developments highlight the transformative potential of blockchain across multiple domains:
- Integration with Traditional Finance: BlackRock’s ETF underscores the synergy between blockchain and established financial systems.
- Tokenization Trends: Plume’s funding success reflects the growing demand for digital asset solutions.
- Quantum-Resistant Technologies: SEALSQ and Hedera’s partnership addresses emerging cybersecurity challenges.
- Enterprise Blockchain Adoption: Deutsche Bank’s public, permissioned network showcases the adaptability of blockchain in financial services.
- Social Impact: KuCoin’s philanthropic efforts illustrate blockchain’s capacity to drive positive societal outcomes.
The post Blocks & Headlines: Today in Blockchain (BlackRock, Plume, SEALSQ, Hedera, Deutsche Bank, KuCoin) appeared first on News, Events, Advertising Options.
-
Blockchain5 days ago
Bridging Innovation and Regulation: How Yellow Network is Transforming Non-Custodial Trading in a Pro-Crypto Future
-
Blockchain7 days ago
Prosper Adds 7,000 More ASIC Miners from BITMAIN To Drive Tokenization of Hashrate as Multichain RWA ; Targets 170MW Capacity With New Strategic Round
-
Blockchain Press Releases6 days ago
HTX Ventures Identifies Five Rapidly-Growing Sectors in 2024, Expects Positive Crypto Regulations Driven by Trump Next Year
-
Blockchain6 days ago
Blocks & Headlines: Today in Blockchain (Reserve Bank of India (RBI), Aethir, Blockchain Center Abu Dhabi, Qubetics, )
-
Blockchain3 days ago
50,000+ Mined Coins and 100,000 New Users: EMCD Summarizes 2024
-
Blockchain7 days ago
Loan Brokers Market Opportunities and Strategies Report to 2033 – Loan Brokers Market Poised for Strong Growth, Forecasted to Reach $947.9 Billion by 2033
-
Blockchain5 days ago
Building Bridges in Crypto: Bybit Sparked Dialogues and Joined Industry Leaders at Bitcoin MENA
-
Blockchain3 days ago
Blocks & Headlines: Today in Blockchain (BlackRock, Plume, SEALSQ, Hedera, Deutsche Bank, KuCoin)