Great news for the crypto ecosystem!
Dubai’s Virtual Asset Regulatory Authority (VARA) has just released the Virtual Assets and Related Activities Regulations 2023.
Dubai’s Virtual Asset Regulatory Authority (VARA) has just released the Virtual Assets and Related Activities Regulations 2023, a comprehensive regulatory framework for the virtual asset (VA) industry. This is a first-of-its-kind initiative and a testament to Dubai’s commitment to innovation and progress.
As a crypto exchange that prioritizes regulatory compliance, we at CoinMENA are thrilled to see VARA taking a unique approach to treating virtual assets as a new asset class, recognizing that they have different properties and require a dedicated framework. By segmenting the regulations based on the financial services provided (e.g. brokerage, custodian, advisory, etc.), instead of the asset itself (e.g. utility tokens, governance tokens, securities, etc.), VARA is providing a logical and more practical approach to the industry.
The framework identifies 7 distinct services – Advisory services, Broker-Dealer services, Custodial services, Exchange services, Lending-Borrowing services, Payments and Remittances services, and VA Management and Investment services – each defined comprehensively and requiring its own license.
I am proud to be part of a thriving virtual asset community in Dubai and operate in a jurisdiction that is taking bold steps to regulate and advance the industry. VARA’s framework is unique and ambitious and clearly signals to the market that Dubai intends to become a global leader in the digital economy.
VARA is affiliated with the Dubai World Trade Centre Authority, which we partnered with in October 2021 to develop a crypto asset hub. I look forward to continuing working with DWTC and VARA to develop and implement this framework and enable a thriving and sustainable virtual assets ecosystem.
As a believer in free markets, I never thought I’d be this excited about new regulations, but I believe this is a necessary step toward the mass adoption of financial services built on crypto rails.
