Dubai, one of the seven United Arab Emirates, has taken a major step in the digital asset space by bringing its first law to regulate virtual assets and establishing a regulatory authority for this sector.
Announced on Wednesday by Dubai’s ruler Sheikh Mohammed Bin Rashid, the new regulator, the Dubai Virtual Assets Regulatory Authority, will oversee all virtual assets like Bitcoin and non-fungible tokens (NFTs) in the emirate. It has been formed under the Dubai Virtual Asset Regulation Law, which is aimed to create an advanced legal framework around virtual assets.
“We established an independent authority to oversee the development of the best business environment in the world for the virtual assets in terms of regulation , licensing, governance and in line with local and global financial systems,” Bin Rashid stated.
“The future belongs to whoever designs it… and today, through the virtual assets law, we seek to participate in the design of this new and rapidly growing global sector.”
Full Authority over the Digital Asset Industry
The new regulator will be responsible for licensing digital asset companies with legal and financial autonomy over the digital asset industry. In addition, it will be linked to the Dubai World Trade Centre Authority (DWTCA).
Its jurisdictions will be across the emirate, including special development zones and free zones. But, it will not have any authority on the firms in the Dubai International Financial Centre (DIFC). The Dubai Financial Services Authority (DFSA), which regulates all the companies in the DIFC, is preparing its own regulations for the virtual asset sector.
“The Dubai Virtual Asset Regulatory Authority will provide a full range of VA [virtual asset] services in coordination with the Central Bank of the UAE and the Securities and Commodities Authority,” DWTCA’s Director-General, Helal Al Marri told the local media.
“The… initiative will allow virtual asset management, the exchange of cryptocurrencies and will prevent manipulation of virtual asset prices.”
