On the day that the US issued its executive order on cryptocurrencies, Dubai has also made a move by issuing a crypto regulation that embraces the sector.
Dubai’s crypto regulation
The announcement came directly from the ruler, Sheikh Mohammed bin Rashid Al Maktoum via Twitter:
Today, we approved the virtual assets law and established the Dubai Virtual Assets Regulatory Authority. A step that establishes the UAE’s position in this sector. The Authority will cooperate with all related entities to ensure maximum transparency and security for investors. pic.twitter.com/LuNtuIW8FM
— HH Sheikh Mohammed (@HHShkMohd) March 9, 2022
“Today, we approved the virtual assets law and established the Dubai Virtual Assets Regulatory Authority. A step that establishes the UAE’s position in this sector. The Authority will cooperate with all related entities to ensure maximum transparency and security for investors”.
The tweet is accompanied by an image that clearly explains what is happening in the UAE when it comes to cryptocurrencies.
The aim first and foremost is to:
“Establish the UAE and Dubai’s position as a key player in designing the future of virtual assets globally”.
How the VARA will work
The Dubai Virtual Assets Regulatory Authority (VARA) will have the following tasks:
- organizing, issuing and trading with virtual assets and tokens;
- organizing and authorizing service providers related to virtual assets;
- ensuring high standards of protection for users and their personal data;
- organizing the operation of virtual asset platforms;
- monitoring transactions to prevent market manipulation.
The authority will be in charge of authorizing and supervising platforms and exchanges that offer cryptocurrencies, virtual assets and trading also with other currencies, providers of custody services, platforms and services that provide management and transfers.
Challenging the United States
Dubai is challenging the United States with this move. The similarity was also made by the CTO of Bitfinex, Paolo Ardoino:
Did Dubai just front-run US?
— Paolo Ardoino (@paoloardoino) March 9, 2022
“Did Dubai just front-run US?”
After all, the executive order issued by US President Joe Biden is nothing more than a prelude to a regulatory approach that embraces cryptocurrencies, whereas Dubai has effectively gone ahead by setting up an authority with virtually full powers and a single ambition: to make Dubai a leader in the sector. It is the same wish as the US: to maintain innovation leadership.
The challenge is on, and Dubai and the US may soon be joined by all those forward-looking countries that have realized that cryptocurrencies are an opportunity and not a threat.