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His Highness Sheikh Mohammed bin Rashid Al Maktoum approved the Dubai Virtual Asset Regulation Law, giving Dubai its first-ever regulations for digital assets.
The aim of the Dubai Virtual Asset Regulation Law is to provide an advanced legal framework for governing the virtual assets industry and providing investor protection to enable responsible business growth around digital currencies.
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Virtual Asset Regulation Law dictates that free zones, special development zones and the Dubai Virtual Asset Regulatory Authority (VARA) should be established.
The VARA will have financial autonomy and legal authority and shall be connected to the Dubai World Trade Center Authority (DWTCA). It shall be the one responsible for regulating and licensing the virtual assets sector across mainland Dubai and the created Free Zone territories.
Today, we approved the virtual assets law and established the Dubai Virtual Assets Regulatory Authority. A step that establishes the UAE’s position in this sector. The Authority will cooperate with all related entities to ensure maximum transparency and security for investors. pic.twitter.com/LuNtuIW8FM
— HH Sheikh Mohammed (@HHShkMohd) March 9, 2022
The Sheikh emphasized that Dubai will become a key player in designing the future of digital assets around the globe. He noted that Dubai has all it takes to become a global center for virtual assets.
Sheikh Mohammed bin Rashid said:
“Today, we are participating in designing the future of virtual assets globally. Dubai will provide the most advanced virtual asset ecosystem in terms of organization, governance, and security… 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.”
Attracting crypto leaders to Dubai
Director-General of DWTCA Helal Saeed Al Marri said that the new law and the VARA shall allow Dubai and UAE at large to expand its virtual assets sector and also attract global leaders within the industry.
The VARA shall also allow for seamless coordination with the Central Bank of the UAE and the Securities and Commodities Authority in issues related to virtual assets services.
The VARA shall organize and set up rules and laws to govern the conduct of virtual asset services.