Everything you need to know about virtual assets and restrictions under the new Dubai law

  • 2 years ago
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Dubai approved the Virtual Asset Regulation Law on Wednesday to regulate this new-age business, which has been rapidly increasing.

As this new business develops, the local market has witnessed a slew of local and international entrepreneurs and investors build digital assets in recent years. Because this industry is not fully regulated around the world, here are some guidelines that local investors and locals should be aware of before investing.

What is a virtual asset (VA)?

Any digitized token of value that can be traded, transferred, or used for payment might be considered a virtual asset. The digital representation of fiat currency is not included.

What are some of the most widely used virtual or digital assets?
Cryptocurrencies and non-fungible tokens are the most popular digital assets (NFTs).

Does the UAE regulate virtual assets?

In December of last year, Abu Dhabi Global Market was the first to offer a comprehensive regulatory framework. On March 9, 2022, the Virtual Asset Regulatory Authority (VARA) was founded in Dubai to oversee the new industry.

What is the penalty for breaking the regulations governing virtual assets in Dubai?
The board of directors of the Dubai World Trade Centre will establish what constitutes a violation of the terms of the Dubai Virtual Asset Regulatory Laws and associated decisions, as well as the fines imposed on violators. The VARA can suspend the permit for up to six months, cancel the permit, and collaborate with the Emirate’s competent commercial licensing authority to cancel the commercial license, in addition to imposing a fine.
What are the best places to buy and sell virtual assets?
Different digital platforms, such as DEX Crypto Exchange, Matrix, Saxo Bank, Binance, Coinbase, and others, allow users to buy and sell virtual assets.

source: Khaleej Times

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