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- Dubai’s view on Virtual assets
- New Crypto Law
- Power of DWTC and VARA
- Law welcomed by top officials and users
Dubai view on Virtual assets
Sheikh Mohammed bin Rashid Al Maktoum, the ruler of the Emirate of Dubai and one of the world’s richest politicians, has extended the push to make the city the center of digital assets in western Asia.
Dubai approved a new virtual assets law today. This is a key step in Sheikh Mohammed bin Rashid Al Maktoum’s “ambitions to transform Dubai and the United Arab Emirates as a whole into a crypto industry hub”.
“We established an independent authority to oversee the development of the best business environment in the world for the virtual assets in terms of regulation, licensing, governance and in line with local and global financial systems,” Sheikh Mohammed mentioned in a statement.
New Crypto Law
The law states that anyone in the emirate is prohibited from engaging in any business without VARA’s permission, while anyone wishing to engage in virtual assets business must establish a presence in Dubai for business.
The law explained the activities, subject to VARA (Virtual Asset Regulatory Authority), as follows:
- Operating and managing virtual assets platforms
- Exchange service between virtual assets and currency, whether domestic or foreign
- Exchange of services between one or more virtual assets
- Virtual asset transfer service
- Virtual asset management and custody services
- Services related to virtual asset portfolio
- Services related to virtual token offering and trading
Power of DWTC and VARA
Mr. Al Marri said that the acts that constitute a violation of the provisions of the law and the fines for violators will be determined by the board of directors of DWTC (Dubai World Trade Center Authority).
In addition to fines, VARA will also have the power to suspend licenses for up to six months, cancel licenses or coordinate with the relevant business licensing authority in Dubai to cancel the business licenses of violators, Mr. said more.
Law welcomed by Leading Officials and Users
“Regulatory oversight is always good for the industry as it helps it evolve and innovate in a more accountable way and brings more safety to investors,” said Vasja Zupan, president of Matrix, an Abu Dhabi-regulated crypto exchange.
“The new law and the establishment of VARA is a step ahead for Dubai and will have a positive effect on the emirate’s property market”, said Lewis Allsopp, chief executive of property agency Allsopp & Allsopp.
“The law and regulatory authority welcomed by all current and future citizens and residents of the UAE,” Mr Allsopp said.
