Dubai Approves First Law to Regulate Digital Assets, Establishes Regulator to Oversee Crypto Sector – Regulation Bitcoin News

Dubai’s first law to regulate crypto has been adopted. Dubai has established its first law to regulate crypto activity and associated service providers.

Dubai: Crypto sector regulated

Dubai’s first law to regulate cryptocurrency assets has been adopted. The regulator was established to supervise crypto services providers and oversee their activities.

On Wednesday, Sheikh Mohammed bin Rashid Al Maktoum’s official Twitter account announced that Dubai has approved the first law on virtual assets and established the Dubai Virtual Assets Regulatory Authority.

Sheikh Mohammed commented:

Goal [is to] establish the UAE and Dubai’s position as a key player in designing the future of virtual assets globally.

Sheikh Mohammed is the ruler of Dubai and also serves as vice president, prime minister, and the President of the United Arab Emirates, a Federation of Seven Emirates. His previous positions included the heads of Dubai Police and Public security as well as minister of defence.

Sheikh Mohammed noted that the law regulates virtual assets for the first time.

We established an independent authority to oversee the development of the best business environment in the world … in terms of regulation, licensing, [and] governance.

According to the announcement, the Dubai Virtual Asset Regulatory Authority is tasked with overseeing the trading and issuance of “virtual assets and virtual tokens.” It is also responsible for authorizing and regulating virtual asset service providers (VASPs).

In addition, the authority must ensure the “highest standards of protection for beneficiaries’ personal data.” It must also monitor virtual asset transactions to prevent price manipulation.

VARA approval and regulation are needed for all crypto trading platforms, which allow users to exchange cryptocurrencies with fiat currencies as well one or more cryptocurrency. The new law also regulates companies that offer crypto custody and management services.

Except for DIFC, which is a state-owned financial zone DIFC, the new law will be applicable throughout Dubai. The Dubai Financial Services Authority (DFSA), DIFC’s regulator, is working on its own cryptocurrency regulation.

UAE is pushing for crypto regulations in order to bring new business to the country. According to the Securities and Commodities Authority of the UAE (SCA), the UAE has been moving towards establishing its own regulation for crypto assets.

How do you feel about Dubai opening up to crypto regulation? Leave your comments below.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. He is interested in Bitcoin security and open-source software, network effects, and the intersection of cryptography and economics.