Dubai took its first steps towards becoming a major player in the global digital assets space, announcing the adoption of an initial crypto law and the establishment of a Virtual Asset Regulatory Authority that will focus on developing the crypto sector.
The creation of the regulatory groundwork is aimed at making Dubai more welcome towards crypto and the crypto space.
The Virtual Assets Law
The leader of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, signed off on the virtual assets law, which will enable the creation of an independent authority for the oversight of the cryptocurrency space in Dubai. After signing off on the law, Sheikh Mohammed bin Rashid Al Maktoum tweeted,
“The future belongs to whoever designs it. Today, through the virtual assets law, we seek to participate in the design of this new and rapidly growing global sector.”
The law also seeks to establish the United Arab Emirate’s regulatory position in the crypto space. He also stated that the regulatory authority would look to oversee the development of a favorable business environment for digital assets when it comes to the licensing, regulation, and governance of digital assets, in sync with both local and global financial systems. The announcement further stated,
“The authority will “organize the issuance and trading” of virtual assets and virtual tokens while independently authorizing virtual asset service providers. It will also organize the operation of virtual asset platforms and portfolios while monitoring transactions and preventing price manipulation.”
Dubai’s Pivot Towards Crypto
Dubai has been interested in crypto for some time and had made its first move towards the regulation of crypto in December, teaming up with Binance to make the Dubai World Trade Centre a crypto zone, helping to speed up adoption.
Already, Dubai has seen a significant surge in activity related to crypto, and in particular, NFTs. Currently, Dubai has double the activity compared to the global average when it comes to NFTs, with the city hosting several NFT projects. Dubai is also home to Dogecoin-themed Burger Joint, which allows people to pay for their food using crypto.
Scope Of The Law
The virtual asset law will have several entities under its purview, such as operating and managing of virtual asset platforms, crypto exchanges, crypto to fiat exchanges, and crypto payment providers. The developments will ensure that Dubai is primed for more clarity when it comes to regulatory standards regarding the crypto industry, ensuring faster adoption.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2022/03/dubai-establishes-independent-authority-to-oversee-development-of-crypto-sector