Dubai Elevates the UAE Economy Further with New Virtual Assets Law
Nowadays, virtual assets such as cryptocurrencies, particularly Bitcoin, and non-fungible tokens (NFTs) represent the main topic of conversation in any business or financial setting. And with the Dubai Emirate being a leading strategic and innovative government, it is no surprise to find it adapting to technologies such as blockchain and AI.
In the last quarter of 2021, news spread about an MOU signing between the Securities and Commodities Authority and the Dubai World Trade Centre. Later on, during that same year, DWTC announced that it was on its way to becoming the comprehensive free zone and regulator for the full spectrum of virtual assets, including crypto-related assets and NFTs.
Furthermore, a couple of weeks ago, and in a bid to enhance the UAE’s global standing as a major technology and innovation powerhouse, Ruler of Dubai, Vice President and Prime Minister of the UAE, Sheikh Mohammed bin Rashid Al Maktoum, announced a first-of-its-kind law to regulate cryptocurrencies and NFTs.
The Dubai Virtual Asset Regulation Law
According to His Highness, the future is shaped and designed by human hands. Thus, the Dubai Virtual Asset Regulation Law came into effect to leverage the gains virtual assets provide to the UAE economy with the knowledge that they constitute a prominent part of its GDP.
The virtual assets law serves to protect investors while promoting ethical and high-quality trading, in line with global standards, that attest to the country’s efforts at cultivating virtual asset activities. This law will also apply to special development zones and free zones throughout the Emirate, except for the Dubai International Financial Centre, as per Khaleej Times.
The Dubai Virtual Assets Regulatory Authority
The Virtual Assets Regulatory Authority will be an autonomous legal entity established under DWTC and a main comprehensive authority responsible for the regulation, licencing and governance of virtual assets. It will also be accountable for licencing and regulating the sector across Dubai Mainland and Free Zone territories (exclusive of DIFC).
Unless licenced by the VARA, no person or entity will be allowed to conduct virtual assets activities in the Dubai Emirate as the authority’s role will be to protect stakeholders, manage virtual asset trading and eliminate price manipulations.
Further insight into the new law and authority
The law and the VARA’s goals are to protect investors and regulate virtual asset trading. The latter will also be authorised to organise and set the rules and controls that govern the conduct of virtual asset activities, including management services, clearing and settlement services, in addition to classifying and specifying types of virtual assets.
As previously stated, it is prohibited to conduct any virtual asset activities without prior authorisation from the VARA. Failing to comply with this law and related decisions will result in a fine determined by the Dubai World Trade Centre.
As UAE continues to develop and grow into the Middle East’s largest and innovative crypto hub, there’s no telling what tomorrow will bring along. However, one thing is certain, it will be nothing more than advantageous, aiming to pave the way to a better future for our nation.
For those looking to invest in Dubai, Alben Capital is more than ready to guide you on your investment journey and help you map a prosperous path towards financial freedom and success.