Regarding the announcement made by its Prime Minister, the United Arab Emirates (UAE) has recently initiated new laws and proper regulations regarding digital assets in the region.
Vice President and Prime Minister of Dubai, Sheikh Mohammed bin Rashid Al Maktoum made an announcement recently, stating that the government has now given approval to digital asset laws and have also setup a new authority regarding the regulations of cryptocurrencies and other forms of virtual asset classes.
This new Authority is formally named as, Dubai Virtual Asset Regulatory Authority (VARA) and its main goals, as stated by the Sheikh are to manage trading of digital assets and “tokens”, providing approval for any digital “asset service providers”, management of “VA platforms and portfolios”, keeping an eye on transactions to prevent any abnormal price manipulation attempts and many other responsibilities.
High Trading Standards
Supporting the announcement of this new law and regulation framework, the Sheikh said that this new development in the UAE will bring its name higher in the digital asset sector, stimulating its growth and the respective authorities will be in close contact with all the “entities” in order to make sure that investors are “secure” and complete level of “transparency” is assured.
This new development also intended to help the UAE maintain the best level of standards when it comes to operating in such a sector, providing any trader in the sector with the best possible experience, protecting personal user data, while also keeping transactions in check.
Requirements for Traders and Firms
As for how this new law and framework will be implemented, the citizens living in Dubai, or the UAE must be registered with VARA before trying to conduct any sort of cryptocurrency related trading activities. Any Business firms operating in the region must also do the same and must be able to display their existence in the market, providing services regarding cryptocurrency exchanging, transfers or trading of tokens.
VARA in Power
However, the announcement made by the Sheikh did not specifically mention about what cryptocurrencies would be regulated by this law, but it did say that VARA will be the ones authorizing the digital assets and providing proper rules and guidelines. If any trader or firms fails to follow the law, heavy fines or suspension or cancellation of their license will follow, depending upon the severity of the breach.