Dubai watchdog imposes new rules on Crypto companies
The Crypto regulatory body in Dubai introduced some new rules for the Crypto companies providing services in Dubai.
The Virtual Asset Regulatory Authority (VARA) is a Crypto regulatory body in Dubai. This agency provides registration for crypto companies to provide crypto assets-related services in Dubai. In March 2022, this agency was established by the Dubai government authorities. Before 2022, crypto trading in Dubai was not easy for the citizens because of multiple types of restrictions but in late 2021 many Crypto proponents & government agencies showed their Inclination toward crypto adoption to make Dubai a hub of digital innovations.
On 7 Feb 2023, Irina Heaver, a crypto and blockchain lawyer based in the United Arab Emirates, informed the crypto community that Dubai’s VARA agency released a new set of regulatory rules on Crypto companies.
Under the new rule, no company can provide cryptocurrency-related services without registration with VARA. If any company is found to violate this rule then that will be subject to law violation & may face a fine between 20,000 and 200,000 AED and if again found against law violations then fine will be 500,000 AED per offence.
As per the new rule, no company can issue privacy coins or anonymity-featured virtual assets. Every company will be required to pay 100,000 AED and 200,000 AED for Licence and supervision as fees respectively.
Under the new laws, the crypto companies are required to follow the regulations system for marketing, advertising, and promotions their services.
Irina noted that the latest announcement made by VARA is really good news for the Crypto sector in Dubai because this is showing that they are doing work for the Crypto sector & Crypto companies will get better clarity to do business.
It is worth noting that new rules will not be applicable on the Crypto companies providing services in Dubai International Financial Centre (DIFC), a free zone with its regulator.
Read also: US authorities warn people against crypto exposure in IRAs
