UAE Announces New Law to Regulate Cryptocurrencies and NFTs

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai has stated through a Twitter post that he has approved the virtual assets law and established the Dubai Virtual Assets Regulatory Authority (VARA).

Sheikh Mohammed bin Rashid in his tweet mentions that this is a step that establishes the UAE’s position in the sector. The Authority, he says, will cooperate with all related entities to ensure maximum transparency and security for investors.

As explained in his post, the Dubai Virtual Asset Regulatory authority’s tasks include: organizing the issuance and trading of virtual assets and virtual tokens; organizing and authorizing virtual assets service providers; ensuring highest standards of protection for beneficiaries’ personal data; organizing the operation of VA platforms and portfolios; and monitoring transactions and preventing VA price manipulation.

The activities subject to VARA authorization are: operating and managing virtual assets platforms; exchange services between virtual assets and currencies; exchange services between one or more forms of virtual assets; virtual asset transfer services; virtual asset custody and management services; and virtual asset management services.

Sheikh Mohammed bin Rashid said:

The goal: Establish the UAE and Dubai’s position as a key player in designing the future of virtual assets globally.

The response to this tweet has been positive with one user commenting “Amazing!!! Another trailblazing step by Dubai” and another saying “Wow, only a visionary leader can take such a bold decision.”

The United Arab  Emirates has always been a front-runner in the crypto space. The country was early in its adoption of blockchain technology and cryptocurrency and this has helped the growth of the nation’s crypto community. Therefore, this move to create an advanced legal framework to protect investors is seen as a smart and well-intentioned decision.