Sheikh Al Maktoum, UAE’s ruler and Prime Minister recently announced that the country now has a crypto regulator and new virtual asset-related laws. Making this announcement on March 9th, 2022, he said that he had issued orders to create a law and legal framework, This will ensure that crypto businesses can be set up in Dubai.
This law is expected to protect investors and to design the needed international standards for governance. He also said that a new Virtual Asset Regulatory Authority (VARA) has been set up in Dubai. It will have powers to enforce special projects for development and free zones as well. The only zone that will not be under the purview of the Regulatory Authority is Dubai’s International Financial Center.
According to Sheikh Al Maktoum, approving this law and setting up the regulatory agency was a vital step in establishing the country’s position in the crypto arena. It will play a crucial role in helping the sector grow and protect all investors. Any resident living in Dubai will have to register with VARA before starting any crypto activity. Businesses wanting to deal with digital currencies and related activities must have an office in Dubai. They can then operate a crypto exchange, transfer crypto and perform related services.
The announcement didn’t offer much information on which cryptos investors could trade in. The regulatory authority has the task of classifying and specifying the virtual asset types and also set up rules. People or businesses violating laws will be fined and even have their licenses suspended.
There is no clear indication of how free trade zones like the World Trade Center in Dubai will be impacted. Since Dubai is an Emirate unto itself, it has its own set of laws and can set up free zones. These zones offer people and companies the chance to incorporate and get trade licenses.