The United Arab Emirates (UAE) is expected to become a hotspot for virtual assets such as non-fungible tokens (NFTs), blockchain, and cryptocurrencies, as Emirates has introduced new regulations, encouraging the usage of blockchain apps for regional economic advancement.
This week, UAE Cabinet passed a new law regarding virtual assets and also introduced an autonomous regulatory authority for crypto, NFTs, blockchain, and their traders, making it UAE’s first federal level regulatory authority for this sector.
The Dubai Virtual Asset Regulation Law and the Dubai Virtual Assets Regulatory Authority (VARA) will regulate, control, and license cryptocurrency-related businesses. Both, the law and the authority, will come into effect on 15 January 2023.
Mahin Gupta, Founder of Liminal, a Singapore-based digital wallet, expressed delight over UAE’s accelerated pace towards regulation of the virtual asset sector. He stated that the move will make the UAE a top choice of companies, seeking expansion in this industry.
According to Dubai Multi Commodities Centre’s (DMCC) latest data, out of 3,049 companies registered in Dubai in 2020, over 500 were cryptocurrency startups.
Regarding the above-mentioned point, Mahin stated that the data shows Dubai will become a primary hub for crypto-related products and services.
The businesses that come under this law include exchanges, companies facilitating cryptocurrency transfers, and others of such kind. On the other hand, Emirates-owned
The government-owned Dubai Financial Services Authority (DFSA) financial-free zone, on the other hand, is said to be exempt from this rule. It is because DFSA is creating its own laws allowing the virtual asset market to be used there.
Via Arabian Business