XChain: VARA's Partner for Secure Transaction Monitoring for VASPs

XChain, a global leader in digital asset risk monitoring, has announced the launch of its comprehensive services for institutional and retail Virtual Asset Service Providers (VASPs) in Dubai. As the exclusive forensic transaction monitoring partner of Dubai’s Virtual Assets Regulatory Authority (VARA) since 2022, XChain aims to enhance oversight and compliance capabilities for the region’s virtual asset ecosystem. These services are designed to support VASPs and traditional financial institutions (TradFi) exploring digital assets, offering critical solutions in transaction monitoring, regulatory compliance, and forensic analysis.

Addressing Key Compliance and Risk Challenges

XChain’s platform provides full visibility into necessary compliance frameworks, helping VASPs navigate the complexities of on-chain transactions. By delivering real-time insights into risk metrics, the solution addresses significant challenges in the digital asset lifecycle. This early intervention approach not only strengthens the operational foundations of VASPs but also ensures that they are better equipped for proactive risk management, regardless of their specific business models.

Collaborative Development of a Regulatory Dashboard

In collaboration with VARA, XChain is working on an advanced regulatory dashboard tool aimed at improving transaction monitoring standards across the digital asset ecosystem. Scheduled for beta release later this year, the dashboard will integrate real-time on-chain data with open-source intelligence from VASPs. This unified platform is designed to benefit VASPs, traditional financial institutions, and professional service providers managing digital assets, aligning with global best practices in Virtual Assets Regulatory Technology (VARTech).

Haydn Jones, the newly appointed Managing Director of XChain, said: “With an increasing number of companies looking to tap into UAE’s digital assets industry, we are privileged to continue our work streamlining access to on-chain transaction risk-based analytics. It is therefore imperative for the compliance functions within VASPs to have access to the latest thinking, and we are proud to be at the forefront of blockchain forensics and asset monitoring to build a trusted and reliable framework that offers end-to-end support.”

Matthew White, CEO of VARA commented: “At VARA, we are committed to fostering innovation while ensuring robust regulatory standards for the virtual asset ecosystem. XChain’s rollout of its transaction monitoring services represents a significant step forward in enabling VASPs to operate with enhanced transparency and confidence. We are pleased to collaborate with XChain in setting new benchmarks for regulatory technology, which will not only benefit the digital asset sector but also build bridges with traditional financial institutions exploring this space.”

Shaping the Future of Risk Monitoring

By establishing a robust compliance infrastructure and developing innovative tools like the regulatory dashboard, XChain is setting a new standard for transparency and accountability in the region’s digital asset market. This partnership with VARA underscores a shared commitment to fostering a secure and sustainable virtual asset ecosystem in Dubai.