Catenaa, Friday, March 07, 2025 –Dubai’s Virtual Assets Regulatory Authority (VARA) plans to introduce new rules requiring cryptocurrency service providers to disclose the identities of major token holders, commonly known as crypto whales, according to CEO Matthew White.
The regulation aims to improve transparency in the digital asset market by mandating virtual asset service providers (VASPs) operating in Dubai to report ownership structures. The move seeks to prevent market manipulation and offer investors clearer insights into token holdings and associated risks.
White acknowledged enforcement challenges, given the pseudonymous nature of cryptocurrency transactions, but emphasized that blockchain’s immutable ledger allows regulators to track substantial asset movements. While real identities may not always be revealed, VARA intends to monitor large-scale transactions for suspicious activities.
Beyond whale disclosures, Dubai is tightening oversight on financial reserves. VARA will require asset issuers and crypto firms to disclose reserve compositions, undergo independent audits, and establish clear redemption mechanisms. These measures aim to boost investor confidence and prevent sudden market disruptions.
Dubai has been actively expanding its crypto regulatory framework, issuing 24 VASP licenses and reviewing over 350 applications. Recent approvals include Canadian crypto firm Aquanow, decentralized finance platform MANTRA Finance, and exchange HashKey MENA.
VARA is also exploring AI integration to enhance regulatory oversight, further solidifying Dubai’s position as a major global crypto hub.
The Emirate’s regulatory clarity has attracted top industry players, positioning it as a model for balancing transparency with market growth.
