- Dubai has announced a virtual asset law that it hopes will see it become a world leader on blockchain and crypto usage and development
- Sheikh Mohammed Bin Rashid announced the creation of a regulatory body yesterday that will oversee all aspects of regulation and growth
- Dubai is already famously pro-crypto, but this new law will solidify its grand ambitions
The city of Dubai announced itself onto the cryptocurrency world stage yesterday as it revealed the implementation of a Dubai Virtual Asset Regulation Law that will see it endeavor to become a home to the cryptocurrency movement in the region. The country’s ruler, Sheikh Mohammed Bin Rashid, announced on Twitter that the new law, which will see the newly formed Dubai Virtual Assets Regulatory Authority (VARA) overseeing the development, would allow the country to “participate in the design of this new and rapidly growing global sector.” Dubai is known for being pro-crypto, and this new law confirms its plans to be at the forefront of the movement.
Dubai Takes Giant Step Forward in Blockchain Ambitions
Dubai has been on the front foot of the crypto and blockchain space for many years, with government agencies in the city able to use blockchain-based payment system DubaiPay since 2018. It also launched a blockchain payment method for citizens, MenaPay, in May 2019 and has been bullish on the potential of digital assets ever since.
This has now become apparent with the adoption of the Virtual Assets Law, which Sheikh Mohammed Bin Rashid said would lead to a “more beautiful” future for its citizens:
المستقبل ملك لمن يصممه .. واليوم من خلال قانون الأصول الافتراضية نسعى لنشارك في تصميم هذا القطاع العالمي الجديد والمتنامي بشكل سريع .. خطوتنا هي قفزة نحو المستقبل هدفها تنمية هذا القطاع وحماية جميع المستثمرين فيه .. والقادم أجمل .. وأشمل .. وأفضل بإذن الله pic.twitter.com/ZQr0fJ6p2N
— HH Sheikh Mohammed (@HHShkMohd) March 9, 2022
VARA to Regulate and Grow Sector
The Dubai Virtual Asset Regulation Law aims to establish Dubai and the UAE itself as regional and worldwide destinations for the virtual asset industry, with VARA in charge of regulating the use of virtual assets in the region, including cryptocurrency exchanges, businesses facilitating cryptocurrency transfers, and those sending and receiving crypto payments.
The new law will apply throughout most of Dubai, with only the government-owned DIFC financial free zone being unaffected.