The Virtual Assets Regulatory Authority (VARA) in Dubai is set to roll out new rules of engagement that will serve as an operational guide for crypto firms domiciled in Dubai.
The apex regulatory body’s published rule book encapsulates detailed requirements and operational guides for cyber security operations, while the other addresses activities like exchange services, issuance, custody, and advisory role.
Dubai pushes crypto regulations forward
VARA was launched in March 11, 2022 to provide the oil-rich middle east country with a mandate to cater to the needs of the burgeoning crypto hub.
The bespoke rules and guidelines of VARA are meant to provide clarity, mitigate risks, regulate crypto-centric advertising, and assure certainty for the smooth operation of tech start-ups with ambitious roadmaps.
According to VARA, the virtual asset is a digital representation of value that can be transferred online for payments and investment; these virtual assets range from non-fungible tokens (NFTs) to cryptocurrencies and security tokens.
According to government figures, the UAE’s digital economy generates roughly AED 100 billion, or 4.3% of the country’s GDP, and it is touted to be a major destination for crypto firms.
A Jan. 10, 2023 Dubai Multi Commodities Centre (DMCC) report reveals that the United Arab Emirate (UAE) attracted more than 500 crypto start-ups and over 3000 businesses in 2022.
Recall that during an interview with Bloomberg at the World Economic Forum summit, Thani Al-Zeyoudi, the United Arab Emirates minister of state for foreign trade, alluded to the nation’s aspirations to integrate cryptocurrency into a key aspect of its economic growth.
He did, however, hint at the release of subsequent guidelines that will guide the operations of cryptocurrencies. Meanwhile, the newly proposed framework will come into operation after its final approval.