Sheikh Mohammed bin Rashid Al Maktoum, Dubai’s prime minister and ruler, announced on March 9 that Dubai will adopt a new crypto law that will set a precedent for trading digital assets. As the Sheikh explained, the new law will regulate and protect traders.
The official Twitter account for Sheikh Mohammed bin Rashid Al Maktoum announced Wednesday that the first virtual assets law has been approved in Dubai and the Dubai Virtual Assets Regulatory Authority (VARA) has been established
Sheikh Mohammed commented:
The goal is to establish the UAE and Dubai’s position as a key player in designing the future of virtual assets globally. Furthermore, the Sheikh released a statement on Twitter:
As stated in the announcement, Dubai Virtual Asset Regulatory Authority is responsible for overseeing the trading and issuance of “virtual assets and virtual tokens.” Dubai Virtual Asset Regulatory Authority is also responsible for authorizing and regulating virtual asset service providers (VASPs).
Additionally, the authority must ensure that “the highest standards of protection of the data of beneficiaries are enforced.” Lastly, the authority must monitor virtual asset transactions in order to prevent price manipulation.
VARA authorizes and regulates cryptocurrency exchange platforms that allow the exchange of cryptocurrencies with fiat currencies and with one or more cryptocurrencies. Moreover, firms offering cryptocurrency transfer, custody, and management services are also regulated by this newly enacted law.
Dubai’s new law will be applicable throughout the Emirate except for the DIFC, an independently owned free financial zone. The Dubai Financial Services Authority (DFSA), DIFC’s regulator, is working on regulating cryptocurrencies
Dubai has pushed for the development of crypto regulations in pursuit of new businesses. According to the UAE’s securities regulator, the Securities and Commodities Authority (SCA), the UAE is on the verge of introducing its own crypto asset regulatory framework.
