Dubai establishes first crypto law in bid to be world leader for cryptocurrency and blockchain

Dubai establishes first crypto law in bid to be world leader for cryptocurrency and blockchain. (Credit: Pexels)

Dubai establishes first crypto law in bid to be world leader for cryptocurrency and blockchain

Dubai has confirmed its first crypto law as it forms a regulatory body for cryptocurrency and blockchain assets.

The new law comes from the Emirate of Dubai as it tries to position itself as a world leader in terms of emerging technologies like cryptocurrency and blockchain.

The emirate within the United Arab Emirates (UAE) has set up the Dubai Virtual Assets Regulatory Authority (VARA), which will be working to promote security and transparency for crypto investors.

The announcement was made by Sheikh Mohammed bin Rashid Al Maktoum, the Ruler of the Emirate of Dubai as well as the Vice President, Prime Minister and Minister of Defence of the United Arab Emirates.

VARA will be tasked with regulating the sale of virtual assets and virtual tokens while also being responsible for regulation and authorising virtual asset service providers. As cryptocurrency and marketplaces become increasingly widespread, VARA will set to ensure the risk of cryptocrime is reduced and investments are secure and safe. The organisation will also be linked to the Dubai World Trade Centre Authority (DWTCA).

The crypto law, as governed by VARA, is expected to go into effect across all of the emirate with the exception of the Dubai International Financial Centre (DIFC), which is a special economic zone under the ambit of the Dubai Financial Services Authority (DFSA). The DFSA has stated that it will be adopting its own rules for the regulation of cryptocurrencies in the near future for the DIFC.

The news also comes as the world’s largest cryptocurrency exchange Binance has been granted a licence to conduct some operations in Dubai.

In a statement, Binance said: “Binance will be permitted to extend limited exchange products and services to pre-qualified investors and professional financial service providers. All licensed VARA service providers will be monitored progressively to open access to the retail market.”



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