SUI And Dubai’s VARA Sign Partnership to Support Crypto Startups

SUI and Dubai's regulatory body, VARA team up to help emerging crypto projects deal with the complex regulatory and compliance processes.

Published by

Sneha Agrawal

June 5, 2025

Partnership SUI And Dubai’s VARA Sign Partnership to Support Crypto Startups

SUI-VARA:- In the second and most recent instance, the leading blockchain Sui has signed a partnership with Dubai’s regulatory body Virtual Assets Regulatory Authority (VARA).

As part of the partnership, the web3 accelerator of Sui, the SuiHub will work in collaboration with VARA to accelerate the growth of virtual assets in the region.

Interestingly, this partnership of VARA with another leading blockchain comes only a day after it announced establishing a Solana Economic Zone in partnership with Solana.

Sui-VARA Partner to Support Crypto Startups

The partnership between Sui and VARA is based on the common goal of making Dubai as the “crypto hub”. It also includes providing support to crypto startups by hosting educational and regulatory support programs for them.

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As per the announcement, both the partners are expected to work on simplifying the regulatory compliance processes for the projects willing to operate in the region.

It is noteworthy that Dubai’s VARA requires web3 projects to complete a four-stage licensing procedure for Virtual Asset Service Providers (VASPs). This includes Provisional Permit, Preparatory Licence, Minimum Viable Product (MVP) Licence and Full Market Product (FMP) Licence.

VASPs are required to adhere to stringent compliance standards. These include Anti-Money Laundering and Counter-Terrorism Financing, Know Your Customer and risk management procedures. There are other technological standards and reporting requirements such as financial statements and compliance audits.

Thus, the SUI-VARA partnership is significantly going to help the emerging crypto projects to deal with the labyrinth of licenses.

VARA

Clear Regulatory Shifts

Partnerships by regulatory bodies such as Dubai’s VARA underscore the shifting tides in the crypto landscape. Once seen at odds, regulation and crypto are now increasingly aligned. Like SUI-VARA, there are mutual agreements and institutional collaborations marking a new phase of maturity.

This trend isn’t limited to Dubai. Globally, regulatory frameworks are steadily moving toward clarity. Europe’s MiCA (Markets in Crypto-Assets Regulation) and the United States’ Market Structure Bill and GENIUS Act are prominent examples of efforts to define how digital assets fit within existing legal systems.

These initiatives reflect regulators’ intent to draw clearer boundaries between crypto commodities and securities. These are the moves that bodes well for broader adoption and institutional trust in Web3.

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About Author

With over four years of experience in covering and tracking the financial markets, Sneha Agrawal is a dedicated Crypto Journalist and Editor with passion for researching and writing the crypto pieces. She is currently leading the Brandtalk section, here at CoinGape. She likes to keep track of political, legal and financial happenings all around the world - without which she deems her day incomplete. Apart from her Journalistic endeavours, she is a solo traveler, museum goer, and a keen reader of books.