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For example, the Dubai Financial Services Authority acts as a financial regulator for the Dubai International Financial Center and has introduced its own framework on crypto..
In a Wednesday announcement, Sheikh Al Maktoum said he had issued a law creating a legal framework for crypto in the Emirate of Dubai aimed at protecting investors and “designing much-warranted international standards” for industry governance. In an advertisement on wednesday, Sheikh Al Maktoum said he had issued a law creating a legal framework for crypto in the Emirate of Dubai aimed at protecting investors and “designing much-warranted international standards” for industry governance.
"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," said the sheikh.
Today, we approved the Virtual Assets Act and created the Dubai Virtual Asset Regulator. A stage which establishes the position of the UAE in this sector. The Authority shall cooperate with all related entities to ensure maximum transparency and safety for investors. pic.twitter.com/LuNtuIW8FM
— HH Sheikh Mohammed (@HHShkMohd) March 9, 2022
According to Sheikh Al Maktoum, the crypto law will require Dubai residents to register with VARA prior to engaging in crypto-related activities. Virtual asset companies are also required to establish a presence in Dubai. These activities include operating a cryptocurrency exchange office, executing cryptocurrency transfers and other token offering and trading services.
The announcement did not specify which crypto-currencies would be subject to the law. Added that vara would classify and specify types of virtual assets in addition to defining rules and checks. Anyone found in contravention of the new Act could face fines or a suspended or cancelled business permit.
Related: Crypto City: Guide to Dubai
It’s unclear how the legal framework will impact free zones like the Dubai World Trade Centre, which announced in December it planned to become a comprehensive zone and regulator of crypto, products, operators and exchanges. BINANCE CEO Changpeng Zhao lauded the creation of Dubai’s VARA, saying regulatory clarity for cryptocurrencies was important — the crypto exec purchased an apartment in the city in October 2021.
Binance CEO Changpeng Zhao praised the creation of the Dubai vara, claiming that regulatory clarity for cryptocurrencies was important – the cryptocurrency executive bought an apartment in the city in October 2021. For example, the Dubai Financial Services Authority acts as the financial regulator for the Dubai International Financial Centre and introduced its own framework on crypto.
