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The dawn of a new crypto law and regulator in Dubai

Updated: Jul 25, 2024
Published: Mar 10, 2022
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The United Arab Emirates has played a vital role in the adoption of cryptocurrencies as it recently decided to issue new licenses to crypto services providers by the end of the first quarter. It is important to note that one of the emirates, Dubai, has confirmed the dawn of a new crypto law as confirmed by the prime minister and ruler of the United Arab Emirates, Sheikh Mohammed bin Rashid Al Maktoum.

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Dubai introduces crypto law and regulator

As per the statement from Sheikh Mohammed bin Rashid Al Maktoum, the nation will see the formation of a new regulatory body called the Dubai Virtual Asset Regulatory Authority (VARA) which will have financial authority and will also be linked to the Dubai World Trade Centre Authority (DWTCA).

The Sheikh has also introduced the Dubai Virtual Asset Regulation Law which is aimed at "creating an advanced legal framework to protect investors and designing much-warranted international standards for virtual asset (VA) industry governance." The aim behind the introduction of the new law is to "promote responsible business growth, under prudential regulations."

The Sheikh also stated the fact that Dubai will be one of the most crucial grounds for the future of cryptocurrencies and digital assets. The Sheikh also added:

Approving the virtual asset law and establishing the Dubai Virtual Asset Regulatory Authority is a vital step that establishes the UAE’s position in this sector a step that aims to help the sector to grow and protect investors

Collaboration with the Central Bank

The Director-General of DWTCA, Helal Saeed Al Marri, revealed that the VARA will be responsible for providing a number of services to the citizens of Dubai by collaborating with the Central Bank of the UAE and the Securities and Commodities Authority. Furthermore, the AVRA will be the central custodial authority for this new budding industry in the nation. 

The VARA has the authority to form new laws and regulations that will be implemented in the nation "including management services, clearing and settlement services, in addition to classifying and specifying types of virtual assets." No activities can be initiated in Dubai without the involvement of the VARA.

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