Dubai's VARA presents new rules for virtual assets!

Dubai's VARA presents new rules for virtual assets!

Dubai’s Virtual Assets Regulatory Authority (VARA) today published version 2.0 of the framework for regulating virtual assets. This new version aims to significantly improve the regulatory framework for virtual assets in Dubai. Following extensive industry feedback and taking into account international standards, VARA has made significant changes aimed at promoting transparency and security in this dynamic market. This initiative is part of Dubai's ambitious efforts to establish itself as a global hub for virtual assets Bitcoin.com reported.

The updated guidelines are in line with the “Virtual Assets and Related Activities Regulations 2023” previously published in February 2023. These regulations provide a comprehensive framework for virtual assets and emphasize economic sustainability and cross-border financial security. According to VARA, this is the world’s first tailored virtual asset regime.

Comprehensive framework conditions

The VARA regulations are specifically designed to regulate permitted activities and services for customers and investors in Dubai. The definition of virtual assets is precisely defined in Law No. (4) of 2022. The Authority also reserves the right to periodically modify and adapt the regulations to reflect new developments in the global VA industry, as noted VARA is to be read.

The publication of the updated guidelines is another step towards strengthening Dubai's position in the international financial market. The new regulations are intended not only to attract local investors, but also to attract international players interested in the development and deployment of virtual assets. It is also expected that the new regulations will promote innovation in this area.