Dubai Announces Crypto Regulations, as country Pushes for more Virtual Asset Businesses

Last Wednesday, Dubai officially introduced crypto-asset regulations joining the likes of Singapore, the US, the UK, El Salvador, and other countries that have established laws on cryptocurrencies.

Sheikh Mohammed Bin Rashid, prime minister of the UAE, announced that the emirate enacted its first law governing virtual assets. He also stated that Dubai has formed an independent regulator to oversee the country’s 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.

“The future belongs to whoever designs it,” tweeted Sheikh Mohammed bin Rashid Al Maktoum. “Today, through the virtual assets law, we seek to participate in the design of this new and rapidly growing global sector.”

Dubai has reportedly pushed for the development of virtual asset regulation to attract new types of industries as regional economic competition rises. According to a broadcast by Dubai’s state media, the newly formed law aims to establish Dubai and the UAE as a key destination for the virtual asset industry.

The Dubai Virtual Assets Regulatory Authority (VARA) will reportedly oversee the virtual asset business environment of the country and will handle its regulation, licensing, and governance.

Before engaging in crypto-related activities, Dubai residents will be required to register with VARA under the new law. Virtual asset businesses will also need to register with the authority.

However, given these announcements, the Dubai Financial Services Authority (DFSA) is developing its regulations for the virtual asset market.

Source: Coindesk, Business Today