Indonesia’s Otoritas Jasa Keuangan (OJK) and Dubai’s Virtual Assets Regulatory Authority (VARA) have signed a Memorandum of Understanding (MoU) to strengthen supervisory collaboration and enhance regulatory coordination in the field of virtual assets.
According to an official statement, the partnership seeks to enhance cooperation between Indonesia, one of the world’s largest retail markets for digital assets, and Dubai, a leading destination for virtual asset service providers (VASPs), investors, and digital finance talent.
Scope of the partnership
Under the agreement, both regulators will collaborate across several key areas, including information exchange, capacity building, policy discussions, cross-border supervision, and technical assistance related to the oversight of virtual assets.
Mr. Hasan Fawzi, Chief Executive of Financial Sector Technological Innovation, Digital Financial Asset, and Virtual Asset Supervision at OJK, highlighted that fostering cross-border cooperation is essential to ensure interoperability, consumer protection, and effective AML/CFT implementation.
VARA is an institution with a well-defined mandate that closely aligns with that of OJK. Given the global and borderless nature of digital assets, fostering cross-border cooperation with fellow supervisory authorities is crucial.
Dubai and Indonesia reinforce global digital asset oversight
Mr. Matthew White, CEO of VARA, noted that the MoU formalizes structured cooperation on supervision, enforcement, and data sharing, setting new standards for cross-border regulation.
By formalizing structured cooperation on supervision, enforcement, and data sharing, we are strengthening investor protection and mitigating financial crime risks. Collaboration with OJK underscores Dubai’s role as a global nexus for the virtual asset industry, connecting emerging and mature markets through interoperable and transparent regulation.
Dubai’s growing virtual asset market
During an October meeting led by H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Dubai’s leadership announced that the emirate has become the world’s largest licensed market for virtual assets, with digital asset transaction volumes reaching AED 2.5 trillion ($680 billion) and $2.6 billion in assets under management.
This collaboration between OJK and VARA marks a significant milestone in global regulatory cooperation, aiming to enhance market integrity and promote responsible growth across the digital asset ecosystem.