The prime minister and ruler of the United Arab Emirates, Sheikh Mohammed bin Rashid Al Maktoum, announced the adoption of a new crypto law and establishment of the Dubai virtual assets regulatory authority.
According to the announcement, the law is aimed at “creating an advanced legal framework to protect investors and designing much-warranted international standards for virtual asset industry governance.”
Sheikh Mohammed bin Rashid stated, “Today, we are participating in designing the future of virtual assets globally.”
The Dubai Virtual Asset Regulatory Authority will be in charge of licensing and regulating the industry on the mainland and in the free zones territories of Dubai(exclusive of DIFC).
In collaboration with the UAE Central Bank and the Securities and Commodities Authority, the Dubai Virtual Asset Regulatory Authority (VARA) will offer a wide array of virtual asset services.
The authority is also tasked with organizing and establishing the rules and procedures that govern the performance of virtual asset operations, such as management, clearing, and settlement services.
VARA is also responsible for classifying and identifying types of virtual assets, according to the new law.
It is against the law for anyone in the Emirate to engage in activities without first obtaining VARA approval. Anyone intending to engage in any of the VA activities must first establish a presence in Dubai to operate any business.
Cryptocurrency exchanges, firms that facilitate cryptocurrency transfers, and so on are examples of these businesses.
Binance CEO Changpeng Zhao even praised VARA’s establishment in Dubai, stating that regulatory clarity for crypto is important.
A lot of nations are trying to establish new legal frameworks regarding crypto as the sector is rising rapidly these days. Just a day back, the US President, Joe Biden signed an Executive Order to watch over crypto. It directs the Federal Reserve to examine the crypto space and find out whether the Central Bank should develop their own CBDC.
