Guide to VARA audit in Dubai

The supervision of virtual assets falls under the domain of the Virtual Assets Regulatory Authority (VARA) in Dubai. VARA has established a broad regulatory framework that is tasked with regulating and oversight virtual asset activities. This framework includes compulsory rule books applicable to all Virtual Assets Service Providers (VASPs) and customized guidelines for each defined virtual asset activity.

What are the Key Areas of a VARA Audit in Dubai?

The core dimensions of VARA audit in Dubai provide valuable understanding of strengthening your operations such as;

• Governance Excellence

The VARA audit evaluates your compliance program's plan of action blueprint. It includes policies, operations, and staff training. Establishing a deep understanding of possible virtual asset risks and a strong mitigation strategy is fundamental. 

• Cyber Security

Assessment of your VASP's cybersecurity control’s purpose to strengthen defenses against cyber threats and unofficial access. Measures for precautionary customer data align with rigorous data privacy governance. that’s why, instant response and business coherence plans are key components.

• Financial Integrity Blueprint

Keeping auditable records of VARA transactions is important for compliance. Auditors guarantee alignment with VARA guidelines in checking virtual assets held by your VASP. The effectiveness of internal controls governing financial reporting and record-keeping procedures is inspected. It ensures transparency and Financial Integrity in your transaction.

• AML and CTF Vigilance

Specific scrutiny of KYC (Know Your Customer) and CDD (Customer Due Diligence) processes ensures all-inclusive client identification. It is very significant to ensure Anti-Money Laundering and Counter-Terrorist Financing. The audit evaluates;

What is the process for preparing a VARA Audit in Dubai?

The process includes preparing the VARA Audit in Dubai;

• Know the Regulatory Depths

Start your VARA audit readiness by adjusting yourself to the complex domain of the Virtual Assets Law (VAL) and relevant VARA Rule books. Regularly review the key documents and stay up-to-date with the VARA’s official updates.

• Precision in Corrective Actions

Make a strategic action plan that depicts specific steps to address potential gaps, with clear obligations and deadlines. Update internal plan of action and procedures to smoothly align with VARA compulsions. This step focuses on precision and effectiveness in closing compliance ambiguities.

• Documenting Compliance

Set up the legal documentation for a unified VARA audit in Dubai. Organize the mandatory documents precisely for easy recovery during the audit. It establishes transparent audit trails for crucial processes and transactions. The documents are;

• Guidance of Auditors

Designate a devoted point of contact to modernize the connection between your team and auditors. It is very important to launch active stances such as;

• Promptly answer requests with clear explanations
• Seek clarification whenever uncertainties arise

It encourages an environment of open communication that improves the efficiency of the VARA audit in Dubai.

What are the Recent Regulations VARA Sets for Audit in Dubai?

The most Recent Regulations VARA Sets for Audit in Dubai are;

• Technology and Information Rulebook (October 2023) obligates detailed record-keeping for virtual asset transactions. It highlights data safety through encryption and instant response measures that influence the VARA audit in Dubai.
• Market Conduct Rulebook (November 2023) emphasizes impartial marketing practices. It requires VASPs to establish compliance policies. It includes risk assessments that impact the inspection of the VARA audit in Dubai.
• Circulars and Guidance Notes, distributed occasionally by VARA, guide explicit regulations such as approvals and outsourcing associated with virtual assets. It contributes to considerations of the VARA audit in Dubai.

Conclusion

Grasping the knowledge of VARA audit in Dubai is essential for businesses navigating the developing landscape of virtual assets. A complete understanding of VARA regulations, careful self-assessment, and strategic remedial actions are fundamental for unified compliance. As companies manage to follow strict requirements, associating with a trustworthy audit firm is key. Farahat & Co. is one of the top audit firms in Dubai. Their proficient team offers professional guidance for an effective VARA audit in Dubai that ensures transparency, and safeguards against possible penalties.

FAQs

What is the virtual asset?

Virtual assets (crypto assets) state any digital picture of value that can be numerically traded, transferred, or used for money.

How can I get a VARA license in Dubai?

The process to get a VARA license in Dubai is;

• Submit a Preliminary Disclosure Questionnaire (PDQ) to Dubai Economy and Tourism (DET) or an applicable Free Zone Authority.
• Provide extra documentation as essential.
• Pay early fees (normally 50% of the license application fee) obligatory to start the application review.

When was VARA established?

VARA was established in March 2022. Its goal is to take its mission worldwide by generating an easy-to-imitate framework to regulate the industry.

What are the types of virtual assets?

Examples of virtual assets are;

• Crypto assets
• Decentralized autonomous organization tokens
• Non-fungible tokens
• Tokens claiming to be backed by possessions
• Other underlying assets

How much is the VARA license in Dubai?

VARA shall confirm its assessment of a firm's actions through the firm's viable licensor and firms measured as carrying out the activity of exclusive trading will be mandatory to pay an annual NOC fee of AED 1,000.

Read More: VARA Sets New Regulations for Virtual Assets in Dubai