Dubai issues Regulations on Virtual Assets and Related Activities

02/14/2023 14:46 • Tech Trends • 152 views

On February 14, the Dubai Virtual Assets Regulatory Authority (VARA) issued the Regulations on Virtual Assets and Related Activities in 2023, and formulated a comprehensive virtual assets framework to support economic sustainability and cross-border financial security. The framework will provide regulatory certainty for the market by mandating Dubai’s licensed entities to adopt gold standard risk assurance and anti-money laundering (AML) standards. The seven licenses under the VARA system include advisory services, broker-dealer services, custody services, trading services, lending services, payment and remittance services, and VA management and investment services. Issuance is also a regulated activity under the VARA system, allowing consumers to make more informed decisions about the new tokens launched in Dubai and the relevant obligations of the issuer.

Dubai builds a virtual asset framework

Analysis based on this information:

The Dubai Virtual Assets Regulatory Authority (VARA) has issued the Regulations on Virtual Assets and Related Activities to maintain economic sustainability and cross-border financial security. The regulations aim to provide the market with regulatory certainty by requiring licensed entities in Dubai to adopt gold-standard risk assurance and anti-money laundering (AML) standards. The seven licenses under the VARA system include advisory services, broker-dealer services, custody services, trading services, lending services, payment and remittance services, and VA management and investment services.

The issuance of tokens is also a regulated activity under the VARA system, which allows consumers to make informed decisions about new tokens launched in Dubai and understand the obligations of the issuer. This move is in line with Dubai’s aim to position itself as a leader in the digital economy and attract more investors and businesses to the region.

The issuance of these regulations signals Dubai’s commitment to regulating virtual asset activities to ensure transparency, accountability, and investor protection. VARA’s comprehensive virtual assets framework aligns with international best practices and sets the benchmark for future virtual asset regulations in the region.

The regulatory standards set by VARA will see licensed entities comply with strict anti-money laundering and risk assurance standards, making Dubai an attractive destination for digital currency and financial technology firms. Furthermore, this will protect consumers and businesses from fraud and money laundering and enhance Dubai’s reputation as a safe and secure business hub.

In conclusion, Dubais issuance of the Regulations on Virtual Assets and Related Activities is a significant step towards regulating the virtual asset industry. The regulations will provide regulatory certainty and encourage further growth and investment in the digital economy. This move shows the commitment of Dubai to position itself as a leader in the fintech industry by ensuring transparency, accountability, and compliance with international standards.

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Dubai issues Regulations on Virtual Assets and Related Activities

Dubai builds a virtual asset framework

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