Dubai’s regulatory authority, Virtual Assets Regulatory Authority (VARA) released updated virtual assets and related activities regulations for 2023 announcing the ban of privacy crypto coins.
As per the VARA guidelines, “the issuance of Anonymity-Enhanced Cryptocurrencies and all VA Activity[ies] related to them are prohibited in the Emirate.”
Privacy cryptocurrencies like Monero (XMR) are now not allowed to be used under the new laws set forth by Dubai’s VARA.
The regulation also sets fees for advisory services, licensing, and annual supervision for custody, exchanges, broker-dealers and lending services.
When applying for a licence from VARA, all entities must follow the licencing procedures as set forth by VARA from time to time. The Dubai regulator also highlighted that all market participants, whether they are licensed by VARA or not, must follow regulations for marketing, advertising and promotions regulations.
The guidelines says that the new regulation are aimed to to increase awarenes, to attract investors and to curb illegal practices making Dubai “as a regional and international hub for Virtual Assets and related services.”
Last year, Dubai adopted a new crypto law and established the VARA. In collaboration with the UAE Central Bank and the Securities and Commodities Authority, VARA offers a wide array of virtual asset services.
Also Read: Dubai Regulator VARA issues Virtual Assets Marketing Guidelines
