New Delhi: Sheikh Mohammed bin Rashid Al Maktoum, the current vice president, prime minister as well as Ruler of the Emirate of Dubai took to his Twitter to announce that UAE has adopted its first law to regulate crypto assets. According to his tweet, the law would contribute towards the development and establishment of UAE and Dubai’s position with vital players orienting the future of virtual assets globally.
Maktoum stated in the tweet, “We established an independent authority to oversee the development of the best business environment in the world of virtual assets in terms of regulation, licensing, and governance.”
Dubai Virtual Asset Regulatory Authority (VARA) will be executing the law on virtual assets. Besides, the laws have been established and would be overseen. Besides, the regulation of virtual assets in Dubai would be implemented in the following ways under the supervision of VARA:
- VARA would be serving as a regulator to oversee crypto activities and related service providers.
- Also, VARA would be given the responsibility of supervising the trading and issuing of virtual assets and virtual tokens.
- It would be responsible for authorising and regulating the virtual asset service providers VASPs).
- Moreover, the regulatory authority has to make sure the highest standards of protection for beneficiaries’ personal data.
- It also has to monitor virtual asset tractions to prevent price manipulation.
- VARA is also responsible for authorising and regulating crypto trading platforms that are offering the exchange between cryptos and fiat currencies and between one or more cryptos would be subject to VARA.
- Offering crypto transfer, custody, and management service, the concerned companies would also be scanned under the purview and will be regulated by the new law.
- The new law will be pertinent throughout Dubai except for the state-owned financial free zone, Dubai International Financial Center (DIFC).
- Also, the regulator of DIFC Dubai Financial Service Authority (DFSA) is working on its own cryptocurrency regulation.
- For licensing, supervising, and overseeing the activities and services of the virtual asset issued for investment purposes will be under the authority in the UAE mainland of the UAE securities regulator (SCA).
- However, this would not include the virtual assets issued for payment purposes.