The Dubai Virtual Assets Regulatory Authority (VARA) is moving forward with pilot projects in gold and decentralized finance (DeFi), as the emirate continues to establish itself as a global hub for virtual assets.
Speaking to Emirates News Agency (WAM), Matthew White, CEO of VARA, confirmed that VARA develops new pilot projects in gold and DeFi as digital alternatives to traditional financial products. These initiatives are part of the Authority’s broader mission to establish a robust regulatory framework that promotes innovation while ensuring legal certainty and investor protection.
VARA’s Licensing Momentum
White revealed that VARA has issued 36 full licences to virtual asset entities to date, with several hundred more firms in various stages of the licensing process. Currently, Dubai is home to over 400 registered virtual asset entities operating across blockchain services, proprietary trading, and related activities.
Real Estate Tokenisation Through Fractional Ownership
A highlight of VARA’s ongoing innovation agenda is its strategic partnership with the Dubai Land Department, which has enabled a pilot project allowing for fractional ownership of real estate via tokenised assets. The pilot phase successfully listed two properties, attracting nearly 300 investors, 70% of whom were first-time buyers in Dubai.
“This model enables individuals to own a share of a property without having to purchase it outright, broadening access to the real estate market,” White said. He added that tokenised real estate assets are expected to be listed on trading platforms soon, increasing liquidity and accessibility.
New Focus On Gold And DeFi
As VARA develops new pilot projects in gold, it is exploring the potential of digitising physical gold into tokenised, tradable assets. Parallelly, DeFi solutions are being studied for their scalability and compliance potential, with White confirming that these innovations are being assessed under controlled environments to evaluate their risk-reward profiles.
Oversight, Compliance & Enforcement
White explained that VARA employs a comprehensive supervisory framework that begins with detailed regulatory guidance, including a marketing rulebook that features real-life examples. Companies must also submit data on customer profiles and transactions, which VARA analyses through automated and manual tools.
For enforcement, VARA operates a dedicated track to handle violations, which may result in warnings, fines, or licence revocations. A “horizon scanning” system has also been deployed to detect and act against unlicensed virtual asset operations, both online and offline.
Collaborative Regulation
VARA collaborates with UAE entities, including the Securities and Commodities Authority, the Central Bank of the UAE, Dubai Police, and the Department of Economy and Tourism, to ensure comprehensive oversight and enforcement across the virtual asset ecosystem.
Experimental Regulation And Strategic Vision
White emphasised VARA’s unique approach as a flexible and forward-thinking regulator. Through experimental regulatory programmes, the Authority tests new business models before fully integrating them into the official framework. This adaptability supports rapid innovation while maintaining market integrity.
Founded in 2022, VARA was established in line with the Dubai Economic Agenda D33, which seeks to double the size of the emirate’s economy over the next decade. As the world’s first dedicated virtual assets regulator, VARA plays a crucial role in bolstering investor confidence and attracting global digital asset players to establish a presence in Dubai.
–Input WAM
