Dubai launches new regulatory framework to govern crypto sector

What

The UAE’s Prime Minister has signed a new law for virtual assets alongside the launch of an independent body to oversee crypto governance in the region

Why

The new regulatory framework is intended to create “much-warranted international standards” to improve the up-and-coming industry, according to an official statement

What next

The law now requires Dubai citizens to register first before engaging in crypto-related activities

The Story

The United Arab Emirate’s (UAE) Prime Minister Sheikh Mohammed bin Rashid Al Maktoum has signed a new law for virtual assets alongside a brand new independent body to oversee the governance of crypto in the country.

Named VARA, Dubai’s Virtual Asset Regulatory Authority will handle the classification of virtual assets and monitor the digital assets sector. Following the introduction of the new law, citizens of Dubai will now have to register with VARA before they can start using interacting with crypto-related products. Should the laws be ignored, VARA also has the power to impose fines and suspend businesses that do not comply.

Meanwhile, Dubai’s crypto rules came into enforcement the same day US President Joe Biden signed executive orders on the government oversight of the cryptocurrency industry.

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