Dubai Passes First Virtual Asset Regulation Law
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has approved Dubai Virtual Asset Regulation Law, the first law on regulating virtual assets.
Except for the Dubai International Financial Centre, the provisions of the law are applicable throughout the whole emirate of Dubai, including special development zones and free zones.
Sheikh Mohammed has also established the Dubai Virtual Assets Regulatory Authority (VARA), an affiliate of the Dubai World Trade Centre, with the aim of regulating and supervising the future growth of virtual assets in the emirate.
Tasks mandated to VARA will include:
- Organizing issuing and trading of virtual assets and virtual tokens.
- Organizing and authorizing virtual asset service providers.
- Ensuring highest standards of protection for beneficiaries’ personal dada.
- Organizing the operation of VA platforms and portfolios.
- Monitoring transactions and preventing VA price manipulation.
Activities subject to VARA authorization and control:
- Operating and managing virtual assets platforms
- Exchange services between one or more forms of virtual assets
- Virtual asset custody and management services
- Exchange services between virtual assets and currencies
- Virtual asset transfer services
- Virtual asset management services
Moreover, VARA will play a role in punishing those who violate the new laws through a number of penalties, including:
- Penalty of a fine
- Suspension of the permit for a period not exceeding six months
- Cancellation of the permit
- Cancellation of the commercial license