On the day that the US issued its executive order on cryptocurrencies, Dubai also took a step by issuing a crypto regulation that encompasses the sector.
Dubai Cryptocurrency Regulation
The announcement came directly from the ruler, Sheikh Mohammed bin Rashid Al Maktoum via Twitter:
Today, we approved the virtual assets law and established the Dubai Virtual Assets Regulatory Authority. A step that establishes the UAE’s position in this sector. The Authority will cooperate with all related entities to ensure maximum transparency and security for investors. pic.twitter.com/LuNtuIW8FM
— HH Sheikh Mohammed (@HHShkMohd) March 9, 2022
“Today we passed the virtual assets law and established the Dubai Virtual Assets Regulatory Authority. A step that establishes the position of the UAE in this sector. The Authority will cooperate with all related entities to guarantee maximum transparency and security for investors.”
The tweet is accompanied by an image that clearly explains what is happening in the United Arab Emirates when it comes to cryptocurrencies.
The objective above all is:
“Establish the position of the United Arab Emirates and Dubai as a key player in shaping the future of virtual assets globally.”
Dubai wants to be the leader of the crypto world
How will the VARA work?
The Dubai Virtual Assets Regulatory Authority (VARA) will have the following tasks:
organizing, issuing and trading virtual assets and tokens; organizing and authorizing service providers related to virtual assets; ensuring high standards of protection for users and their personal data; organizing the operation of virtual asset platforms; supervising transactions to prevent market manipulation.
The authority will be in charge of authorizing and supervising the platforms and exchange houses that offer cryptocurrencies, virtual assets and trade also with other currencies, providers of custody services, platforms and services that provide administration and transfers.
Challenging the United States
dubai stands defying the united states with this move. The similarity was also made by the CTO of Bitfinex, Paolo Ardoino:
Did Dubai just front-run US?
– Paolo Ardoino (@paoloardoino) March 9, 2022
“Did Dubai just overtake the US?”
After all, the executive order issued by US President Joe Biden is nothing more than the prelude to a regulatory approach that encompasses cryptocurrencieswhile Dubai has gone ahead to establish an authority with virtually complete powers and a single ambition: make Dubai a leader in the sector. It is the same desire of the US: to maintain leadership in innovation.
The challenge is on, and Dubai and the US will soon join all those far-sighted countries who have realized that cryptocurrencies are an opportunity and not a threat.
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