UAE Government to tackle virtual asset financial crime with Dubai regulator

The UAE Ministry of Interior and the Dubai Virtual Assets Regulatory Authority (VARA) have teamed up to to combat virtual asset financial crimes using specialized task forces, electronic platforms, and training programs.

As per the press release, this agreement highlights the UAE’s commitment to safeguarding its financial system while fostering leadership in the digital economy.

The aim of the collaboration is to unify efforts when it comes to information sharing on virtual asset service providers, such as crypto exchanges, custodians, and others. VASPs, the MOI, and VARA, will share information on illicit transactions, and unlawful practices.

The UAE Ministry of Interior seeks to facilitate rapid and secure exchange of data with VARA with the aim of ensuring that the virtual assets sector in the UAE remains secure, innovative, and aligned with international standards.

Joint trainings, task forces and electronic platforms to be developed

As part of the collaboration, both entities will develop joint training programs, specialized task forces, and electronic platforms to monitor and detect suspicious activities. These initiatives aim to strengthen the regulatory framework, ensuring that only compliant virtual asset service providers operate in Dubai, thereby enhancing financial system integrity and consumer confidence.

Consumer protection is high up the list for both the UAE Ministry of Interior and VARA as is the combatting of money laundering efforts, and maintaining financial stability in the UAE.

Major General Khalifa Hareb Al Khaili, Undersecretary of the Ministry of Interior, emphasized the importance of collaboration with national institutions to achieve a robust regulatory framework.

While Mathew White, CEO of VARA, noted, “This MoU marks a significant milestone in our collective mission to build a secure and well-regulated virtual assets ecosystem. By deepening our collaboration with the Ministry of Interior, we are reinforcing measures to detect and prevent financial crimes in the virtual assets space.”

Dubai Police investigated $16.3 million in virtual assets money laundering cases

During the years between 2022 and 2024 Dubai Police revealed that they had conducted money laundering financial investigation cases worth $16.3 million (60 million AED) in virtual assets, or crypto asset cases.

Additionally, the Dubai Economic Security Center disrupted a crypto money laundering operation worth $49 million. In total, both investigations uncovered $65.3 million in crypto money laundering cases.

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