Dubai Approved the First Law to Regulate Digital Assets
The Emirate wants to establish an independent authority that will regulate cryptocurrencies.
The United Arab Emirates (UAE) has adopted its first law that regulate digital assets and established an agency to regulate the market and oversee crypto activities in order to become a regional and global destination for this industry.
“Today, we approved the virtual assets law and established the Dubai Virtual Assets Regulatory Authority. A step that establishes the UAE’s position in this sector. The Authority will cooperate with all related entities to ensure maximum transparency and security for investors” announced in a tweet the Sheikh Mohammed bin Rashid Al Maktoum, prime minister of the United Arab Emirates (UAE).
The Sheikh approved the Dubai Virtual Asset Regulation Law and established a Dubai Virtual Assets Regulatory Authority (VARA), an independent authority under the Dubai World Trade Centre Authority which would be tasked with oversee the regulation, governance, and licensing of virtual assets and supervise the development of the new business environment. In particular, VARA’s main responsibilities include organizing issuing and trading of virtual assets and virtual tokens, organizing and authorizing virtual assets service providers (VASPs), ensure highest standards of protection for beneficiaries’ personal data, organizing the operations of VA platforms and protfolios and monitor transactions and prevent VA price manipulation.
The residents of Dubai would be required to register with VARA before engaging in crypto-related activities under the new law.