Paul Boots, Head of Sector Development at Virtual Assets Regulatory Authority (VARA) 

1. Could you introduce yourself and share the journey that led you to become the Head of Sector Development at VARA?

I’ve spent the last two decades at the intersection of fintech, policy, and innovation building ecosystems, scaling ventures, and enabling regulatory frameworks. My journey took me from leading innovation at DMCC to launching Beehive, the region’s first regulated P2P platform, and most recently to building a new venture on behalf of the Investment Corporation of Dubai (ICD). Joining VARA was a natural evolution: it’s a rare opportunity to help shape an entirely new asset class from a regulatory front, in one of the world’s most future-forward economies.

2. Your career spans fintech, strategy, and innovation. How do these experiences inform your approach to sector development at VARA?

Fintech taught me how technology breaks legacy barriers. Strategy showed me how to build resilient frameworks. Innovation gave me the agility to adapt as the ground shifts beneath us. At VARA, I apply all three—pushing for market inclusion while maintaining regulatory discipline.

3. As a founding COO of Beehive, you pioneered peer-to-peer lending in the region. How does that experience influence your perspective on decentralized finance today?

Decentralized finance echoes many of the promises—and challenges—we faced with P2P lending. The core insight is this: disintermediation must come with accountability. DeFi’s potential is immense, but only with rules of the road that foster trust, not just code.

4. What motivated you to transition from ICD to VARA, and how do you see your role contributing to Dubai’s D33 economic agenda?

Dubai’s D33 strategy is about accelerating the emirate’s evolution into one of the world’s top four global financial centres and doing so by future-proofing its economy through innovation and investment in high-growth sectors. For me, the opportunity to join VARA was a chance to actively contribute to this growth story.

My move was driven by a belief that virtual assets are not just a financial innovation, they are a foundational pillar of tomorrow’s global economy. In my role, I focus on aligning the right stakeholder, public and private, local and international, to help Dubai attract, scale, and retain the next wave of Web3 and digital asset pioneers. Sector development at VARA is about building regulatory infrastructure that enables trust and responsible growth, while positioning Dubai as the jurisdiction of choice for a rapidly expanding global industry.

5. VARA is the world’s first independent virtual assets regulator. What does this pioneering status mean for Dubai and the broader Middle East?

It puts Dubai at the epicentre of the next financial evolution. Independence gives VARA the agility to respond to a fast-moving sector while anchoring trust in the global system. For the region, it sets a benchmark in how to regulate emerging markets without stifling them.

6. How does VARA balance innovation with investor protection in its regulatory framework?

Our frameworks are modular and activity-based meaning we regulate based on risk, not just form. We’ve also embedded safeguards like mandatory disclosures and marketing conduct rules to ensure that innovation doesn’t come at the expense of trust.

7. Can you elaborate on VARA’s approach to cross-border collaboration, particularly with the Securities and Commodities Authority (SCA) and international regulators?

We’re not building an island—we’re building a lighthouse. Whether it’s with the SCA domestically or IOSCO globally, we believe regulatory convergence, not harmonization, is the way forward. Our recent engagements with European and Asian regulators reflect this cooperative posture.

8. You’ve mentioned VARA’s pilot programs as a real-world testing ground. Could you share insights from recent pilots, such as those in real estate tokenization?

Our real estate tokenization pilot, run in partnership with Dubai Land Department and Dubai Future Foundation, has shown that digital infrastructure can augment liquidity and fractional ownership in traditionally illiquid markets. Structuring this as a regulatory pilot enabled the relevant stakeholders cooperate closely to test the technology, regulatory requirements, and investor appetite in a real world environment. The feedback has been overwhelmingly positive and we look forward to supporting the responsible growth of this part of the industry with many more parties and products coming on-board.

9. How does VARA ensure that these pilots translate into scalable, compliant solutions for the virtual assets industry?

We structure our pilots with predefined success metrics, clear regulatory boundaries, and a pathway to licensing. Each pilot sets out clear and transparent reporting obligations for all parties involved. The lessons learned are then codified into our rulebooks or guidance notes where required.

10. What role do licensed Virtual Asset Service Providers (VASPs) play in these pilot programs, and how do they contribute to the regulatory process?

Our regulatory pilots are only open to fully licensed VASPs, so they are co-creators in this journey. They’re not just participating—they’re shaping regulatory contours through real-world feedback loops. In return, they gain first-mover advantage and deeper regulatory clarity.

11. VARA recently partnered with the Dubai Land Department on real estate tokenization. How does this initiative enhance market liquidity and investor access?

It unlocks direct fractional ownership of property title deeds that are registered with the relevant Governmental Authority (DLD), rather than relying on Special Purpose Vehicle (SPV) structures to secure beneficial ownership of a property. This in turn reduces the number of parties, time, and costs involved in the registration, and transfer, of ownership of these properties, as well as the ability to invest in parts of a property rather than entire units or buildings. This enables a broader demographic to access prime real estate at a fraction of the transaction costs. The first property that was tokenized attracted a group of investors of which more than 70% were first-time real estate buyers. These structures introduce a new asset class to a new investor audience, with programmable compliance—making secondary markets more efficient and transparent, thus increasing the overall liquidity in the market.

12. What safeguards are in place to protect investors in tokenized real estate assets?

We’ve implemented dual-licensing regimes (VARA and DLD), whitepaper reviews, ongoing supervision fees, and marketing disclosure requirements. Only regulated entities can participate, and investor education is central to onboarding.

13. How does this collaboration align with Dubai’s broader goals for innovation and economic growth?

Dubai aims to double its digital economy’s contribution to GDP by 2033. Our pilot with DLD is emblematic of this ambition—redefining legacy sectors through Web3 rails while ensuring consumer protections.

14. VARA has introduced regulations on virtual asset marketing to ensure transparency and fairness. How do these regulations address concerns about misleading promotions and investor protection?

Our Marketing and Promotions Rulebook prohibits exaggerated claims, mandates disclaimers, and holds VASPs accountable for third-party promotions. The goal is simple: prevent hype from displacing substance.

15. What measures does VARA take to ensure compliance with these marketing regulations among licensed entities?

We’ve embedded ongoing supervision, conduct reviews, and enforceable penalties. But we also offer clarity—our guidance notes and campaign assessments help entities stay compliant proactively, not reactively.

16. How does VARA balance the need for effective marketing with the responsibility to protect consumers from potential risks?\

We encourage innovation in storytelling but within defined boundaries. It’s about informed consent; marketing can excite, but it must also educate.

17. With the rapid evolution of virtual assets, how does VARA plan to adapt its regulatory framework to stay ahead of emerging trends and technologies?

Through modular rulebooks, continuous public consultation, and direct engagement with innovators. We monitor the tech stack as closely as we monitor the market dynamics—and evolve our frameworks in tandem.

18. What role do you envision for VARA in shaping global standards for virtual asset regulation?

We see ourselves as a pathfinder. By trialling frameworks in a live environment, we can offer proven models to global regulators. Our work with IOSCO, and bilateral partners reflects our commitment to shared governance.

19. Looking ahead, what are the key milestones VARA aims to achieve in the next 3–5 years to solidify Dubai’s position as a global hub for virtual assets?

Three things:

• Full licensing of our ecosystem with measurable economic outputs
• Scaling pilot programs into mainstream markets
• Cementing Dubai’s status as a jurisdiction of first reference for responsible innovation

20. Given VARA's pivotal role in shaping Dubai's regulatory landscape for emerging sectors, how do you envision the integration of virtual assets within the broader real estate ecosystem, particularly in the context of RISE 2026's focus on innovation and sustainable urban development?

Tokenization aligns perfectly with RISE 2026. It enables smart city infrastructure, citizen participation in urban ownership, and global capital flows into sustainable assets. By embedding regulatory clarity into these innovations, VARA helps turn ambition into action.

To learn more about VARA, visit www.vara.ae