Dubai introduces new crypto law, establishes regulatory authority for oversight
Dubai introduced crypto asset regulation on Wednesday and has joined the likes of Singapore, the US, UK, El Salvador, etc. which have rolled out laws on cryptocurrencies. . Dubai’s ruler, Sheikh Mohammed Bin Rashid announced on Wednesday that the emirate has enacted its first law governing virtual assets and has also formed an independent regulator to regulate the cryptocurrency sector.
"Adopting the virtual assets law and establishing the Dubai Virtual Assets Regulatory Authority is an essential step that establishes the UAE’s position in this sector, a step that aims to help the sector grow and protect investors," he said.
UAE is a federation of seven emirates and the financial powerhouse of the region, Dubai, has been pushing for the development of virtual asset regulation in order to attract new types of industry as regional economic competition intensifies.
The Dubai Virtual Asset Regulation Law aspires to establish Dubai and the UAE as regional and worldwide destinations for the virtual asset industry, according to a statement broadcast by state media.
The regulatory authority, The Dubai Virtual Assets Regulatory Authority (VARA) would oversee the growth of the virtual asset business environment in terms of regulation, licencing, and governance.
The residents of Dubai would be required to register with VARA before engaging in crypto-related activities under the new law. Virtual asset-related businesses would also need to register. These businesses include cryptocurrency exchanges, businesses facilitating cryptocurrency transfers, etc.
The new law will apply throughout Dubai, with the exception of the government-owned DIFC financial free zone. The Dubai Financial Services Authority (DFSA), the DIFC's regulator, is developing its own regulations for the virtual asset market.
Meanwhile, the notification did not clarify which crypto assets would be included by the new rule.
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