Dubai’s Virtual Assets Regulatory Authority Issues a Rulebook for Crypto Businesses
Dubai Virtual Assets Regulatory Authority (VARA) has issued a rulebook for crypto companies operating in the Emirate
The initiative aims to attract more crypto-related businesses to the city, as well as reduce illicit activity and protect digital asset investors.
The Dubai Virtual Assets Regulatory Authority (VARA) has issued a rulebook for crypto companies operating in the Emirate. With this move, Dubai aims “to establish the Emirate as the capital of the future economy anchored by metaverse, AI, web 3.0, and blockchain.” The authorities plan to attract more crypto-related businesses to the city, as well as reduce illicit activity and protect digital asset investors.
The rulebook provides clarity on several issues related to crypto businesses. First of all, it states that any Dubai-based entity that wishes to issue digital assets has to follow the guidelines, and all companies willing to operate in the Emirate must get a license.
VARA was inaugurated at the beginning of March 2022 to establish the legal framework for virtual assets in the United Arab Emirates. In May 2022, the regulator opened its headquarters in The Sandbox metaverse and became the first-ever authority to enter the virtual world.
The Dubai Virtual Assets Regulatory Authority helps the Emirate as it strives to become the world’s leading crypto hub. In November 2022, the government introduced a 100-day metaverse strategy, which is supposed to accelerate the development and adoption of web3 initiatives in the Emirate. The program is mainly aimed at government organizations and businesses. It also includes the education of the citizens on the metaverse and the development of a virtual community.
Notably, Dubai’s Crown Prince Sheikh Hamdan bin Mohammed is very serious about his metaverse plans: The governor aims to add $4 billion to Dubai’s economy and to create 40,000 virtual job places within the next five years.
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