The cryptocurrency regulator of Dubai is determined to increase its headcount as it gets ready to deal with mass application requests for license acquisition.
The regulator has announced that it plans on increasing its headcount in the upcoming months. As per the officials, they have been receiving so many requests for the acquisition of licenses to operate in Dubai.
Announcement by VARA
The Virtual Assets Regulatory Authority (VARA) has made an announcement pertaining to increasing its workforce.
As per the regulator, they have started receiving hundreds of applications for the approval of licenses. Several players from the cryptocurrency industry seek licenses to operate as cryptocurrency service providers.
The surge was recorded after the government of Dubai introduced new rules around the cryptocurrency industry. The new rules they have introduced are very supportive and friendly towards cryptocurrencies.
Therefore, many key players from the cryptocurrency industry have been attracted by the new rules. Hundreds of cryptocurrency firms have approached the regulator to get the license to operate as digital asset service providers.
Although Dubai is very friendly towards cryptocurrencies, it does not mean that it is going to show leniency in terms of regulations.
The state has laws and rules in place that ensure that the crypto industry remains regulated. However, the rules are not very strict or cruel in the cryptocurrency industry, unlike other worldwide states.
The gulf state wants to become a major crypto hub and it is adopting a very friendly approach toward cryptocurrencies.
As Dubai has become a major hub for businesses and industries, the crypto sector will definitely thrive there.
Regulator to Handle Hundreds of Applications
As per the regulator, since the announcement of new rules, they have received more than 300 applications for license acquisition.
They are expecting to receive many more applications over the course of time. However, they do not have the workforce to review and process the applications in time.
They are in need of a bigger team that is able to review and process the applications by the end of 2023.
Statement by Henson Orser
The chief executive officer at VARA, Henson Orser made a statement about their plans for the year 2023.
Orser stated that their first priority is to ensure that they have a bigger team to handle the applications on time.
The team they have now is not sufficient and they do not want to overburden them with extra work and pressure. He feels that their team needs to be four times the size of what it is at the moment.
This is when they will be able to meet their target of processing over 300 applications as the year reaches its conclusion.
Orser further confirmed that they have already authorized several crypto firms to operate in Dubai under the minimum viable product licensing regime of Dubai.
Although these firms were permitted they were never issued the final permits. Their second priority is to issue the final permits for these companies and they aim to do it by the third quarter of 2023.
Things Have Gone Crazy
Henson Orser even commented on the situation that they are currently dealing with. He revealed that they did not expect to see so much response after the government of Dubai announced changes to the crypto rules.
Things have gone crazy after the announcement and they are trying to bring the situation under control. Despite receiving so many requests, it does not mean that all of them will be approved.
Several applications may get rejected as the businesses may not meet the criteria or requirements they have to meet to be eligible for authorization.
He added that they have been working tirelessly towards enforcement and supervision. They want to make sure that their operations run smoothly and without any delays.
It was back in March 2022 when VARA was launched into the system. At that time, the authority was based on 2 operatives and the number has grown to 20.
They want to increase the number to at least 60 operatives in the year 2023.
