The activities of crypto market participants in the emirate of Dubai received a regulatory framework that applies beyond the companies operating under the Dubai International Financial Centre (DIFC), a free economic zone.
The Virtual Asset Regulatory Authority (VARA) issued a set of regulations for virtual asset service providers (VASP) operating within the emirate. This was announced by Irina Heaver, Crypto and Blockchain Lawyer in the United Arab Emirates.
The document, titled “Full Market Product Regulations,” contains four mandatory sets of rules and separate regulations for specific activities. Virtual asset service providers operating in Dubai are now required to obtain a VARA license. This doesn’t apply to individual professionals except for traders with trading capital above $250 million. Additionally, issuing cryptocurrencies with a higher level of confidentiality is now banned in Dubai. Details of the document can be found on the regulator’s website.
“Regulatory certainty is very good for business. It is good for consumers and for the Emirate of Dubai,” Irina commented on the release of regulatory rules.
The new rules regulate all aspects of VASPs and related areas but don’t extend to companies registered in the DIFC free economic zone. Recall that the crypto market regulator within the DIFC is the Dubai World Trade Centre (DWTC), which received the relevant status at the end of 2021.
