VARA’s CEO Proposes Cost-Sharing Model to Support Small Crypto Businesses

Matthew White, the CEO of Dubai’s Virtual Asset Regulatory
Authority (VARA), has voiced intentions to alleviate regulatory pressures on
smaller cryptocurrency entities. Speaking at a regulatory panel during the
Paris Blockchain Week, White acknowledged the imperfections in current crypto
regulations and emphasized the need for improvements, particularly to support
smaller players in the industry.

White highlighted the significant financial strain
associated with regulatory compliance, particularly for smaller businesses
lacking adequate resources. He expressed VARA’s focus on exploring
solutions to mitigate these challenges, aiming to create a regulatory
environment that accommodates all participants.

Among the proposed measures is a concept where larger
players in the crypto space could provide support to smaller entities by
shouldering a portion of their compliance costs. This model would allow smaller
businesses to enter the regulated ecosystem without facing prohibitive
compliance expenses.

“The cost of compliance is borne by the larger systemic
players, and this allows the smaller players to come into the ecosystem, be
regulated, but also not have to suffer the same sort of level of costs of
compliance
Compliance

In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a

In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a
Read this Term that we’ve got,” explained White.