New rules that will act as an operational manual for crypto companies based in Dubai are about to be released by VARA.
The apex regulatory body’s published rule book contains comprehensive specifications and operational guidelines for cyber security operations, while the other covers tasks including exchange services, issuance, custody, and advising roles.
Dubai advances crypto regulations
On March 11, 2022, VARA was established to give the oil-rich nation in the middle east a mandate to serve the demands of the emerging crypto hub.
The specific regulations and rules of VARA are designed to ensure assurance for the seamless operation of digital start-ups with ambitious roadmaps and to provide clarity, reduce risks, control crypto-centric advertising.
Virtual assets, such as non-fungible tokens (NFTs), cryptocurrencies, and security tokens, are digital representations of value that may be transferred online for investments and payments, according to VARA.
Government statistics show that the UAE’s digital economy contributes over AED 100 billion, or 4.3% of the nation’s GDP, and it is hailed as a prominent location for crypto companies.
According to a report released on Jan. 10, 2023 by the Dubai Multi Commodities Centre (DMCC), the United Arab Emirate (UAE) attracted more than 500 cryptocurrency start-ups and more than 3000 businesses in 2022.
Recall that during an interview with Bloomberg at the World Economic Forum summit, Thani Al-Zeyoudi, the United Arab Emirates minister of state for foreign trade, alluded to the nation’s aspirations to integrate cryptocurrency into a key aspect of its economic growth.
However, he made a suggestion that additional rules might be published later to govern how cryptocurrencies operate. The recently suggested framework will go into effect following final approval.
