On March 9, the prime minister of the United Arab Emirates (UAE), His Highness Sheikh Mohammed bin Rashid Al Maktoum informed that Dubai adopted its first law that will regulate cryptocurrencies and digital assets, like non-fungible tokens (NFTs).
Ruler His Highness Sheikh Mohammed bin Rashid Al-Maktoum tweeted that such a step “establishes the UAE’s position in this sector” and aims “to ensure maximum transparency and security for investors”.
Thus decision will do wonders for Dubai – one of the seven emirates that make up the UAE, already a popular destination for the crypto and web 3.0 community.
The Dubai Virtual Asset Regulatory Authority (VARA), which the UAE wants to establish under the new law, will regulate the sector. The VARA is also supposed to be an independent authority under the Dubai World Trade Centre.
Authority also would oversee the regulation, licensing, and governance of virtual assets, non-fungible tokens (NFTs), and cryptocurrencies.
The law prohibits any person in the Emirate to engage in activities without Dubai VARA authorization as the competent body in the Emirate to regulate, supervise and control virtual asset services.
Anyone who wishes to practice any of the VA activities must establish a presence in Dubai to conduct business.
The main responsibilities of VARA are to organize the issuance and trading of virtual assets and tokens, to organize and authorize virtual asset service providers, to ensure the highest standards of data protection for beneficiaries, to organize the operation of virtual asset platforms and portfolios, to monitor transactions, and to prevent virtual asset price manipulation.
His Highness wants to make UAE the global destination for the virtual asset sector. He said,” key player in designing the future of virtual assets globally”.
Local NFT platforms have welcomed the move as good for business, with crypto holders increasingly interested in digital art as a form of investment.