Key takeaways:
- No organisation may provide virtual asset services in Dubai unless it has a licence from VARA.
- Non-compliance is punishable by a fine of between 20,000 and 200,000 AED.
To provide assurance and more clarity regarding the expected level of operator accountability and to reduce market risks, Dubai’s Virtual Assets Regulatory Authority (Vara) has set guidelines.
In order to combat the global concerns of money laundering (ML) and terrorism financing (TF), which may result from the potential abuse of emerging technologies, the UAE has remained dedicated to enabling these drivers safely.
The VARA Regulations provide for the legal framework for virtual assets and all associated activities in the Emirate of Dubai, as well as the authority of VARA for oversight and enforcement.
UAE’s watchdog has been gradually taking significant steps to strengthen its position in the cryptocurrency industry. Last year between the time frame of one month, two firms (Q9 capital and blockchain.com) got provisional approval from VARA.
Irina Heaver, a cryptocurrency and blockchain attorney located in the United Arab Emirates, sent information indicating that VARA has published the “Full Market Product Regulations,” which comprise four mandatory rulebooks and activity-specific rulebooks that specify the procedures for running VASPs.
Helal Almarri, director general of Dubai’s Department of Economy and Tourism and chairman of Vara’s executive board, said, “Dubai’s D33 economic strategy has outlined our aim to develop the emirate as the capital of the future economy centred by metaverse, AI, Web3.0, and blockchain.”
Let’s not forget that Dubai’s VARA made history by becoming the first government authority to debut in the metaverse in May of last year.
In a response to a twitter user who was interested in learning whether the new set of laws had any impact on bitcoin, Irina Heaver also emphasised that nothing had changed regarding the status of bitcoin in Dubai.
The Dubai regulator emphasised that in accordance with the rulebooks, all market interested parties whether or not they have a licence from VARA—must abide by the rules for marketing, advertising, and promotions. Infringers will pay fines ranging from $5,500 to $55,000 , and repeat offenders might be penalised up to $135,000 for their actions..
