On March 9, United Arab Emirates’s ruler and also vice president and prime minister Sheikh Mohammed bin Rashid Al Maktoum declared on his official Twitter account that the Emirates has adopted its first law to regulate crypto assets. The law would work towards establishing and developing Dubai and UAE’s place as important players in orienting the fate of virtual assets across the globe. In the tweet, Rashid Al Maktoum said that they established an independent authority to manage the development of the best business environment in the world of virtual assets in terms of licensing, regulation and governance.
The law on virtual assets has been set up and would be executed and managed by Dubai Virtual Asset Regulatory Authority (VARA). The regulation of virtual assets in Dubai would be implemented in the following ways under the supervision of VARA: VARA would be offered the responsibility of supervising the issuance and trading of virtual tokens and assets. VARA would dedicatedly serve as a regulator to manage crypto tasks and associated service providers. It will also be in charge of authorizing and regulating virtual asset service providers (VASPs).
The regulatory authority has to make sure the highest standards of protection for the personal data of the beneficiaries. It must also analyze virtual asset transactions to prevent price manipulation. VARA would also regulate and authorize crypto trading platforms offering the exchange between fiat currencies and cryptos and between one or more cryptos would be subjected to VARA.