Dubai establishes virtual asset regulator and announces new crypto law

cointelegraph.com:

Sheikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai in the United Arab Emirates who holds several positions including prime minister, has announced a new law on virtual assets as well as the establishment of a crypto regulator.

In a Wednesday announcement, Sheikh Al Maktoum said he had issued a law creating a legal framework for crypto in the Emirate of Dubai aimed at protecting investors and “designing much-warranted international standards” for industry governance. In addition, the ruler said a newly formed Dubai Virtual Asset Regulatory Authority, or VARA, would have enforcement powers in the Emirate’s special development zones and free zones with the exception of the Dubai International Financial Centre.

"Approving the virtual asset law and establishing the Dubai Virtual Asset Regulatory Authority is a vital step that establishes the UAE’s position in this sector a step that aims to help the sector to grow and protect investors," said the Sheikh.

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

According to Sheikh Al Maktoum, the crypto law will require Dubai residents to register with VARA prior to engaging in crypto-related activities. Businesses dealing in virtual asset activities must also establish a presence in Dubai. These activities include operating a crypto exchange, conducting transfers of cryptocurrencies, and other services related to offering and trading tokens.

The announcement did not state which cryptocurrencies would fall under the law, but added