Dubai introduces virtual asset law to develop crypto sector
The Ruler of Dubai, his Highness Sheikh Mohammed bin Rashid Al Maktoum, issued the Dubai Virtual Asset Regulation Law. The aim is to develop an advanced legal framework for investor protection and planning international standards for the virtual asset (VA) industry governance that will enable responsible business growth, under prudential regulations.
Dubai Moves Ahead With Virtual Assets Regulation
Under the law, the provisions of which are applicable throughout the Emirate, including special development zones and free zones, the Dubai Virtual Asset Regulatory Authority (VARA) shall be established. However, the Dubai International Financial Centre is excluded from it.
The VARA has legal personality and financial autonomy and will be linked to the Dubai World Trade Centre Authority (DWTCA).
Sheikh Mohammed bin Rashid emphasizes on Dubai becoming a key player in designing the future of virtual assets in the world. Noting that Dubai possesses all the capabilities that qualify it to be one of the most important global centres in the field of virtual assets, especially the advanced legislative environment, he said:
"Today, we are participating in designing the future of virtual assets globally. Dubai will provide the most advanced virtual asset ecosystem in terms of organization, governance, and security."
Citing the importance of the law, he said:
"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."
The Dubai Virtual Asset Regulatory Authority will be responsible for licensing and regulating the sector across Dubai Mainland and Free Zone territories. Also, as a part of the strategy of the Dubai Securities and Exchange Higher Committee.
The Law Creates Immediate Mandate for All Virtual Assets
Helal Saeed Al Marri, Director-General of DWTCA, said that the new law and establishing the Authority would enhance the UAE and Dubai’s position in the expanding virtual assets sector and attract leaders from all over the world.
Moreover, Dubai Virtual Asset Regulatory Authority will provide a full range of VA services in coordination with the Central Bank of the UAE and the Securities and Commodities Authority.
The law comes into force from the date of its publication in the Official Gazette, the competent body in the Emirate to regulate, supervise, and control virtual asset services.
The law also stipulates that the VARA is mandated with organizing and setting the rules and controls that govern the conduct of VA activities. It also includes management services, clearing, and settlement services, in addition to classifying and specifying types of virtual assets.
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