The virtual asset rulebooks published by the Dubai government Tuesday spell out the criteria for businesses seeking authorization and licensing to operate in Dubai. These rules are designed to ensure companies adhere to a number of key requirements – from cybersecurity measures to compliance, risk management, and fraud prevention standards. There is also a separate rulebook that covers more specific activities such as digital asset issuance, advisory, custody, and exchange services.
The rulebooks are published by the Virtual Assets Regulatory Authority (VARA), set up last year with the mission of overseeing digital asset activities in Dubai and creating a friendly environment for crypto and blockchain companies. We indeed have seen a number of companies flock to the emirate ever since, eager to take advantage of the friendly crypto regulations and the attractive business ecosystem in Dubai.
It’s worth noting that the crypto rulebooks are only part of the picture. In addition to the rules, companies must also comply with the relevant legislative, regulatory, and industry standards frameworks applicable to all business entities in Dubai.
What’s The Main Goal?
On Tuesday, Dubai’s VARA Regulatory Authority, aiming to create a model framework that guarantees certain security and clarity, and reduces risks in the global economy, announced its commitment to an innovation-driven environment without borders and unconstrained by new technologies. The regulator seeks to create a “truly borderless, technology agnostic, and future-focused” system that will lift global economic sustainability. A UAE representative at the 2023 World Economic Forum in January noted that no company has obtained licenses from the VARA yet.
Governments across the globe are hastening to implement crypto regulations in light of last year’s market crash, which resulted in the failure of significant digital asset exchanges and lending services. The European Union has signaled its plan to adopt a licensing system, with the U.K., South Korea, and other countries following suit in devising their own regulatory frameworks.