Clifford Chance

As part of our recent Future of Digital Finance event jointly hosted with GBBC, we were delighted to welcome Deepa Raja Carbon, the Managing Director and Vice Chairperson of the Dubai's dedicated Virtual Assets Regulatory Authority (VARA) to discuss Dubai's ambitions for digital finance with GBBC CEO, Sandra Ro.  

Deepa's mandate at VARA covers creation, enablement and scale-up of the first-of-its-kind global Virtual Asset ecosystem, as an ‘interoperable’ standard for a future ‘autonomous and decentralised’ economy, assuring strong investor and market risk guard-rails for cross-border transposability. VARA expects to have over 1000 entities fully licensed by the end of the year.

Some of our key takeaways included:

• Deepa emphasized the importance of creating a regulatory environment for digital assets that is distinct from traditional finance, allowing for the unique needs of virtual assets to be addressed. This includes innovations such as VARA operating as a node on the blockchain, allowing them to observe licensee behaviour and encourage self-correction rather than imposing punitive measures. This approach has positioned Dubai as a global hub for innovation in the digital finance space.
• A key theme was the need for collaboration and interoperability among regulators. Deepa discussed the strong relationships VARA has built both with federal regulators in the UAE and international regulators, working towards a harmonised regulatory framework that supports the growth of the virtual assets industry. This collaborative approach helps to ensure that regulations are robust and adaptable to the evolving landscape of digital finance.
• Deepa also highlighted the importance of flexibility and responsiveness in regulation. VARA's approach involves continuous dialogue with industry stakeholders to understand their needs and challenges. This has led to the development of regulations that are practical and supportive of innovation, such as the recent updates to the custody rule book to accommodate the specific requirements of custodians.
• Sustainability and inclusion were also a focus. Deepa discussed Dubai's commitment to green finance and the steps being taken to ensure that the economy transitions towards more sustainable practices. Additionally, the emphasis on financial inclusion and creating opportunities for young and diverse participants in the economy was highlighted as a key priority for VARA.

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Deepa Raja Carbon, Managing Director & Vice-Chair, Dubai Virtual Assets Regulatory Authority (VARA) and Sandra Ro, CEO, GBBC

Speakers:

• Deepa Raja Carbon, Managing Director & Vice-Chair, Dubai Virtual Assets Regulatory Authority (VARA)
• Sandra Ro, CEO, GBBC

 

See more from our Future of Digital Finance event.