Dubai has been nothing short of innovative and advanced in its capacity to wield a modern-day, adaptive society; with the revolutionary Expo 2020 coming to a close, and a whirlpool of pioneering projects underway, Dubai announces the legalization and regulation of virtual assets such as bitcoin and non-fungible tokens (NFT’s).
Safe and Controlled Regulation
Sheikh Mohammed bin Rashid confirmed that Dubai will be a key player in designing the future of virtual assets in the world. Being a driving economic force in industries like real estate, healthcare, transport and logistics, Dubai is set to attract a vast number of investors and talented individuals to the city.
The safe and controlled regulation of virtual assets, as well as the 10-year golden residency visa for coders or computer programmers will create a hub of advanced tech-businesses surrounded the immense potential of Web 3.0.
"Today, we are participating in designing the future of virtual assets globally," he said, noting that Dubai possesses all the capabilities that qualify it to be one of the most important global centres in the field of virtual assets, especially the advanced legislative environment. "Dubai will provide the most advanced virtual asset ecosystem in terms of organization, governance and security. Approving the virtual asset law and establishing the Dubai Virtual Asset Regulatory Authority is a vital step that establishes the UAE’s position in this sector a step that aims to help the sector to grow and protect investors," he added.
According to the law, it is prohibited for any person in the Emirate to engage in activities without VARA authorization. The person wishing to practice any of the VA activities must establish a presence in Dubai to conduct business.
The law defines the activities subject to VARA authorization as follows:
- Operating and managing virtual assets platforms services
- Exchange services between virtual assets and currencies, whether national or foreign
- Exchange services between one or more forms of virtual assets
- Virtual asset transfer services
- Virtual asset custody and management services
- Services related to the virtual asset portfolio
- Services related to the offering and trading of virtual tokens