Dubai Virtual Assets Regulation Law
Dubai has introduced crypto asset regulation, joining the ranks of Singapore, the United States, the United Kingdom, El Salvador, and other countries that have enacted cryptocurrency laws. The Virtual Asset Regulation Law has been passed by Dubai to regulate this new-age industry, which has been rapidly expanding.
- An independent regulator has also been formed to regulate the cryptocurrency sector.
- The Dubai Virtual Assets Regulatory Authority (VARA), a regulatory body, will oversee the development of the virtual asset business environment in terms of licensing, regulation, and governance.
- The Dubai Virtual Asset Regulation Law aims to establish Dubai and the United Arab Emirates as regional and global virtual asset industry destinations.
What needs to be done under the new law?
The new law will require residents of Dubai to register with VARA before engaging in the crypto-related activity. Businesses that deal with virtual assets would also need to register. Cryptocurrency exchanges, businesses that facilitate cryptocurrency transfers, etc are examples of these businesses.
With the exception of the government-owned DIFC financial-free zone, the new rule will apply throughout Dubai. The DIFC’s regulator, the Dubai Financial Services Authority (DFSA), is developing its own virtual asset regulations.
About Virtual Assets Regulatory Authority
Excluding the Dubai International Financial Centre (DIFC), VARA will be responsible for regulating and licensing the sector across the free zone territories and the mainland. The authority will be in charge of establishing and organizing the procedures and rules that will govern VA activities, such as clearing, management, and settlement services, as well as specifying and classifying the types of virtual assets. In collaboration with the UAE Central Bank and the Securities and Commodities Authority, VARA will also be offering a full range of services.
About Virtual Assets
Any digitized token of value that can be traded, transferred, or used for payment might be considered a virtual asset. The digital representation of fiat currency is not included under virtual assets. Non-fungible tokens (NFTs) and cryptocurrencies are the most popular digital assets.