At Paris Blockchain Week, one message stood out. Digital assets deserve clear, practical rules. Endless debate over who is in charge gets in the way of progress. On stage, Matthew White, CEO of Dubai’s Virtual Asset Regulatory Authority (VARA), explained how his team built the world’s first crypto-focused regulator from the ground up. While many authorities defend their turf, White leads with a focus on workable standards, market integrity, and the flexibility digital assets demand.
This session delivered essential insight for anyone following digital assets, compliance, or accounting.
This article is part one of a two-part series. In part two, we dive into why regulatory clarity and data standardization matter so much for accountants in digital assets. If you’re interested in the impact on financial reporting and practical accounting, look for the link at the end of this article.
Ledger Notes Summary
Matthew White called for global regulators to stop fighting over jurisdiction and instead focus on designing rules that work. VARA’s activity-based framework puts innovation and investor protection on equal footing. White also warned that inconsistent stablecoin rules could disrupt cross-border business if global regulators don’t align soon.
For more top takeaways from Paris Blockchain Week, visit our full summary page here.
What is the Virtual Asset Regulatory Authority?
Dubai’s Virtual Asset Regulatory Authority (VARA) is the world’s first regulator focused solely on digital assets. Created in 2022 as part of Dubai’s D33 agenda, VARA is led by CEO Matthew White, an expert with over 20 years of experience in technology and digital asset protection.
VARA’s mandate covers exchanges, custodians, and DeFi platforms. Its goal is to provide the regulatory clarity and investor protection that the industry has long demanded. With a practical and transparent approach, VARA is setting the benchmark for crypto oversight worldwide.
How VARA is Building a Purposeful Regulatory Framework
Dubai’s Big Bet: The First Crypto-Only Regulator
VARA didn’t adapt legacy rules. It started fresh. Launched in 2022, the authority was a direct response to Dubai’s D33 economic plan, which positioned virtual assets as a pillar of future growth. Matthew White, brought in to lead, took that directive seriously. Rather than copy-paste traditional finance rules, VARA designed a full-scope regime tailored to the realities of digital assets. This includes both prudential oversight and market conduct supervision. For DeFi protocols, custodians, and exchanges, VARA provides an entry point into a clear, regulated system. The goal: keep innovation alive without sacrificing consumer protection.
Principles, Not Prescriptions: How VARA’s Framework Works
At the core of VARA’s approach is flexibility. The framework is activity-based, not product-based. This means rules are tied to what a company does, not the technology they use. It is technology-agnostic and product-neutral, allowing room for innovation.VARA sets outcomes and allows operators to meet them in a compliant way.
Matthew White
Virtual Asset
Regulatory Authority
That’s why we chose a principles-based approach. So the market players aren’t tied down to a list of very prescriptive requirements. We’re technology agnostic, product agnostic, so our regulatory model is activity-based, not product-based.
That includes ongoing engagement with the industry. Rather than reacting to change, VARA adapts in real time. This helps build trust and keeps up with blockchain’s pace.
Regulation Fragmentation is a Global Challenge
The Stablecoin Dilemma
One of the most pressing problems in digital asset regulation: the risk of fragmented stablecoin rules. Around the world, new laws are emerging, each with its take on reserves, custody, and issuer requirements. If regulators do not align, operational and compliance costs will rise. In the worst case, some stablecoins could lose the ability to operate across borders entirely.
As White explained, “If we’re not careful, we could end up in a situation where we’ve got a whole bunch of licensed stablecoins in different jurisdictions that are actually unable to operate cross-border because of those slight divergences. At best, you’re going to increase operational and compliance costs to be able to deal with that.
Aligning Standards: Can Regulators Work Together?
To address these risks, VARA is prioritizing global collaboration. White described how his team works closely with other regulators to share knowledge and promote consistency. He believes this is essential to avoid the formation of regulatory “bubbles” that leave digital assets stuck in regional silos.
Looking Ahead for Continuous Improvement
White admits that everything is new in a niche area like digital assets. There is no playbook, so agility and a willingness to learn are critical. VARA’s journey shows that building effective oversight is possible if regulators commit to real-time adaptation and open dialogue with the industry.
Everything’s new. Building something from scratch, that’s pretty hard.” But the result is a regulatory framework that can grow with the industry, not against it.
Beyond the ‘Who’ to Focus on the ‘How’
What should regulators, accountants, and finance teams expect or work towards? Matthew White’s leadership at VARA points to a shift away from debates over who controls the rules and toward designing practical solutions that actually work. His focus on clear principles, ongoing industry engagement, and global collaboration sets a higher standard for digital asset oversight.
For accountants, this means less confusion and more time to focus on meaningful analysis and compliance. As digital assets grow in importance worldwide, regulation needs to be practical, adaptable, and open to change.
VARA’s approach demonstrates what is possible when a regulator listens to the market, adapts its guidance, and partners directly with industry. This model could guide other regions looking to balance innovation with effective protection and trust.
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Curious about how all of this affects accountants and finance teams working with digital assets?
Read part two of this series: “Why Accountants Need Clear Rules: Digital Asset Reporting” for a closer look at the reporting, compliance, and technology challenges, plus solutions to make digital asset accounting practical and reliable.
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