The Virtual Assets Regulatory Authority (VARA) announced its 2023 rules for regulating cryptocurrencies on Wednesday, bolstering the government of Dubai’s declared ambition of becoming a financial technology hub. The regulatory body states that any firm in the Emirate that issues virtual assets must comply with the rules, starting with submitting an application for a Dubai operating license.
The laws provide a comprehensive Virtual Asset (VA) Framework based on economic viability and transnational financial security. In accordance with the legislation, any crypto businesses intending to do business in Dubai must first get the necessary permits and licenses.
According to the rule-book, a license may be withdrawn for a variety of reasons, including significant breach of any law, regulation, rule, or directive, bankruptcy, or being subject to insolvency proceedings, or failing to pay a judgement issued by a court inside or outside the United Arab Emirates.
According to the article, VARA is the world’s first independent regulator for virtual assets and serves as a trusted guiding authority for the burgeoning world of Virtual Assets. The regulatory organization was founded in 2022 in an effort to lure crypto and blockchain enterprises to Dubai’s crypto industry.
Helal Saeed Almarri, Director General Dubai’s Department of Economy & Tourism and Chairman of VARA’s Executive Board, said in a statement that the mission is to establish the Emirate as the capital of the future economy anchored by metaverse, AI, Web3.0 and blockchain.
Helal Saeed Almarri referred to VARS as the world’s first independent and specialized regulator for Virtual Assets that will act as the catalyst for a completely border-less Digital Economy.
“With bespoke rules and guidelines designed to provide clarity, assure certainty, and mitigate market risks, VARA seeks to develop a model framework for global economic sustainability within an innovation-centric environment that is truly border less, technology agnostic, and future-focused,” the regulator said on Tuesday.
VARA has formulated four “Compulsory Rulebooks” concerning “Company, Compliance & Risk Management, Technology & Information, and Market Conduct.” The regulator has also developed seven activity-specific rulebooks to address the risks associated with advisory, broker-dealer, custody, exchange, lending and borrowing, payments and remittances, and management and investment.
The rules does provide several exclusions, including a professional exemption for “duly registered” practicing attorneys, accountants, and “other professionally licensed business advisors who engage in any [virtual asset] activity in a manner totally incidental to their professional practice.”
To retain these exemptions, professionals must continue to be duly licensed by a competent professional organization to practice in the Emirate and have professional liability insurance suitable to their specialty.
