Dubai's New Virtual Asset Regulation Law Comes Into Effect H.H Sheikh Mohammed bin Rashid Al Maktoum issues a law that will keep Dubai among the key players in designing the future of virtual assets globally.

You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.

Kertu/Shutterstock.com
H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai

H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has announced the issue of the Dubai Virtual Asset Regulation Law, which will apply throughout the Emirate, including special development zones and free zones, with the exception of the Dubai International Financial Center (DIFC).

The new law also envisions the establishment of the Dubai Virtual Asset Regulatory Authority (VARA), which will have a legal personality and financial autonomy as well, and further be linked to the Dubai World Trade Centre Authority.

In a statement, H.H Sheikh Mohammed said, "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."

The law is aimed at creating an advanced legal framework to protect investors and designing much-warranted international standards for virtual asset (VA) industry governance that will promote responsible business growth, under prudential regulations.

The establishment of the VARA comes as a part of the strategy of the Dubai Securities and Exchange Higher Committee. The VARA will provide a full range of virtual asset services in coordination with the Central Bank of the UAE and the Securities and Commodities Authority.

The VARA has been mandated with organizing and setting the rules and controls that govern the conduct of VA activities, including management services, clearing and settlement services, in addition to classifying and specifying types of virtual assets.

Related: Five Things A Metaverse Sceptic Learned By Buying Real Estate In A Virtual Universe

The law further stipulates that it is prohibited for any person in the Emirate to engage in activities without VARA authorization. In addition, any person wishing to practice any of the virtual asset activities must establish a presence in Dubai to conduct business.

The activities that are subject to VARA authorization include 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, and services related to the offering and trading of virtual tokens.

The acts that constitute a violation of the provisions of this law and its related decisions, and the fines imposed on a violator, shall be determined by a decision issued by the board of directors of the Dubai World Trade Centre.

In addition to the penalty of a fine, the VARA may also take any of the following measures against the violator: suspend the permit for a period not exceeding six months, cancel the permit, and coordinate with the competent commercial licensing authority in the Emirate to cancel the commercial license.

Related: In For The Long Haul: Binance Founder And CEO Changpeng Zhao Is Going All In For Crypto

Lifestyle

Dubai Bling Season 3 Review: Come Back Kris Fade; All is Forgiven

Multiple personalities, handbags and egos are back for more.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Leadership

Architect Of Ambition: Muhammad BinGhatti, Chairman of Binghatti Holding

Muhammad BinGhatti, Chairman of Binghatti Holding, has reshaped the UAE's real estate landscape by merging architectural innovation with luxury, and has forged partnerships with iconic global brands like Bugatti and Mercedes-Benz while leading a portfolio valued at AED40 billion.

Growth Strategies

Effective Communication In Business Needs Much More Than Language Proficiency

Effective communication encompasses a verbal, written, and process-driven communication framework with clearly laid standards and operating procedures.

Money & Finance

9 Side Hustles to Make Money Fast

Want to make extra money ASAP? Check out this breakdown of nine quick side hustles to get inspired and start earning quickly.