The United Arab Emirates (UAE) Prime Minister and Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum is forming the framework to ensure that Dubai remains a crypto friendly state. With intent to be a “major player” globally in crypto, Dubai’s ruler has announced the creation of the new regulatory and licensing authority that will “oversee the development of the best business environment in the world for virtual assets in terms of regulation, licensing, governance, and in line with local and global financial systems”.
The UAE Prime Minister stated “The future belongs to whoever designs it” and “Our step is a leap towards the future aimed at developing this sector and protecting all investors in it.”
What is in Dubai’s new crypto law?
The Dubai ruler says the crypto law will require that Dubai residents register with VARA before working in crypto related activities. Also that businesses who deal in digital currencies must establish a presence within Dubai. The activities cited included conducting crypto transfers, operating a cryptocurrency exchange and several other activities related to trading tokens.
The law did not specifically mention any specific cryptocurrencies but did state that VARA would specify types of digital assets and create rules. It also states if any party violates the law they may face fines or have their business permit cancelled. The penalties for violations will be determined by the board of directors of the Dubai World Trade Centre.
Dubai has become a crypto haven
Cryptocurrency has enjoyed great success in the emirate over the last several years. With no capital gains tax and the ease of buying and selling anonymously, Dubai makes life easy for crypto investors. The government can be categorized as “pro-crypto” and promotes investment in the space. Today you can purchase almost anything in Dubai via cryptocurrencies including property and cars. Dubai is also home to the Dogecoin themed ‘Burger Joint” where patrons can pay for their meals with crypto. NFT activity is double the global average and the city is home to many NFT projects.