Dubai has introduced crypto asset regulation, joining the ranks of Singapore, us, the UK, the Republic of El Salvador, and other countries that have enacted cryptocurrency laws. The Virtual Asset Regulation Law has been elapsed Dubai to control this new-age industry, which has been rapidly expanding.
An independent regulator has also been formed to control the cryptocurrency sector.
The Dubai Virtual Assets administrative body (VARA), been a regulatory body, will have an overview of the event of the virtual asset business environment in terms of licensing, regulation, and governance.
The Dubai Virtual Asset Regulation Law aims to ascertain Dubai and also the United Arab Emirates as regional and global virtual asset industry destinations.
What must be done under the new law?
The new law would force residents of Dubai to register with VARA before engaging within the crypto-related activity. Businesses that cope with virtual assets would also must register. Cryptocurrency exchanges, businesses that facilitate cryptocurrency transfers, etc are samples of these businesses.
along with an exception for the government-owned DIFC financial-free zone, the new rule will apply throughout Dubai. The DIFC’s regulator, the Dubai Financial Services Authority (DFSA), is developing its own virtual asset regulations.
About Virtual Assets administrative unit
Excluding the Dubai International Financial Centre (DIFC), VARA is accountable for regulating and licensing the arena across the country territories and also the mainland.
The authority is going to be accountable for creating and organizing the procedures and rules which will govern VA activities, like clearing, management, and settlement services, further as specifying and classifying the categories of virtual assets. unitedly with the UAE financial organization and therefore the Securities and Commodities Authority, VARA also will offer a full range of services.
About Virtual Assets
Any digitized token useful which will be traded, transferred, or used for payment can be considered a virtual asset. The digital representation of fiat currency isn’t included under virtual assets. Non-fungible tokens (NFTs) and cryptocurrencies are the foremost popular digital assets.