On Wednesday, March 9, Dubai officially published new rules of regulation regarding the local cryptocurrency market.
Thus, the UAE has joined countries such as Singapore, the United States, the United Kingdom, El Salvador and a number of others that have paid close attention to the issue of regulating crypto assets in the last couple of years.
A new VARA (Virtual Assets Regulatory Authority) has been created. This agency will be responsible for legislative regulation, licensing and management of the cryptocurrency sector.
Residents of Dubai who wish to become participants in the cryptocurrency market are now required to register with VARA. This applies to both individuals and businesses. Any company operating in this sector must obtain a license: exchange platforms, organizations engaged in transfer and others.
The new law is valid throughout Dubai with the exception of DIFC Special Economic Zone. DFSA agency, which is the main regulatory body of DIFC, is going to develop its own legislation regarding virtual assets.
The authorities of Dubai and the UAE are trying to actively enter the cryptocurrency market and hope to consolidate their place as a regional leader in the sector.