Dubai’s ruler, Sheikh Mohammed bin Rashid Al Maktoum, Dubai’s vice president, announced that Dubai officials have passed a new law which aims to regulate virtual assets such as cryptocurrencies and NFTs. According to the new law, Dubai seeks to construct an advanced legal framework to safeguard investors and set worldwide standards to oversee the virtual asset business.
Today, we approved the virtual assets law and established the Dubai Virtual Assets Regulatory Authority. A step that establishes the UAE’s position in this sector. The Authority will cooperate with all related entities to ensure maximum transparency and security for investors. pic.twitter.com/LuNtuIW8FM
— HH Sheikh Mohammed (@HHShkMohd) March 9, 2022
Firstly, the Emirate will establish a new regulator, the Virtual Asset Regulatory Authority, or VARA, to regulate the virtual asset market in Dubai. VARA will have complete legal and financial independence and will be affiliated with the Dubai World Trade Centre Authority, or DWTCA.
Helal Al-Marri, Director General of the DWTCA, stated that it is the collaboration of the Central Bank of the UAE and the Securities and Commodities Authority through which the Dubai Virtual Asset Regulatory Authority (VARA) will provide a comprehensive range of VA [virtual asset] services. VARA will have complete power over the virtual asset business, including the ability to licence, regulate, and administer it. Its authority will encompass both special development zones and free zones, but it will not include the Dubai International Financial Centre, which is developing its own set of rules for VA.
VARA will also be in charge of developing and implementing the sector’s regulations and controls. This will comprise the classification and specification of virtual assets, the manner in which virtual asset operations will be carried out, the manner in which virtual assets will be maintained, and the manner in which clearing and settlement will take place.