Sheikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai in the United Arab Emirates who holds several positions including the prime minister, has announced a new virtual assets law as well as the creation of Cryptocurrency regulator.
In an announcement on Wednesday, Dubai's ruler said he had passed a law creating a legal framework for cryptocurrency in Dubai aimed at protecting investors and designing much-needed international standards for industry governance.< /p>
In addition, Mohammed bin Rashid said that the newly formed Dubai Virtual Asset Regulatory Authority will have executive powers in the emirate's development zones and free zones except Dubai International Financial Centre.
He said: The adoption of the Virtual Assets Law and the establishment of the Virtual Asset Regulatory Authority in Dubai is a vital step that establishes the position of the UAE in this sector, a step aimed at helping the sector grow and protect Investors.
According to Sheikh Mohammed bin Rashid Al Maktoum, Dubai's crypto law will require residents of Dubai to register with VARA before engaging in crypto-related activities. Companies that deal in virtual asset activities should also establish a presence in Dubai. These activities include operating a cryptocurrency exchange, performing cryptocurrency transfers, and other services related to offering and trading tokens.
The announcement did not say which cryptocurrencies would fall under the law, but added that VARA would classify and define types of virtual assets as well as set rules and controls. Anyone who violates the new law may face fines or have their work permit suspended or revoked. The Dubai World Trade Center Board of Directors will determine the course of action when violations occur.
It is not clear how the legal framework will affect free zones such as the Dubai World Trade Centre, which announced in December that it plans to become a comprehensive and regulated zone for cryptocurrency, products, operators and exchanges. .
Binance CEO Zhang Bingzhao hailed the creation of VARA in Dubai, saying that regulatory clarity for cryptocurrencies was important — the crypto CEO bought an apartment In the city in October 2021.
As an emirate within the UAE, Dubai largely has its own laws and regulations, operating several free zones where people can incorporate businesses and apply for business licenses. For example, the DFSA acts as the financial regulator for the DIFC and has introduced its own framework on cryptocurrencies.
