New Dubai law: All you need to know about virtual assets and regulations

New Dubai law: All you need to know about virtual assets and regulations

Dubai on Wednesday issued Virtual Asset Regulation Law to govern this new-age industry which has been growing at an exponential pace.

As this new industry evolves, the local market has seen many entrepreneurs and investors – both local and foreign – launching digital assets over the past couple of years. Since this sector is not fully regulated across the globe, here are some guidelines for local investors and residents need to know before they invest in it.

>>What is a virtual asset (VA)?

A virtual asset can take the form of any digitised token of value that could be traded, transferred or used for payment. It does not include the digital representation of fiat currencies.

>>What are the popular virtual or digital assets?

The most popular digital assets are cryptocurrencies and non-fungible tokens (NFTs).

>>Are virtual assets regulated in the UAE?

Abu Dhabi Global Market was the first to offer a comprehensive regulatory framework in December last year. In Dubai, Virtual Asset Regulatory Authority (VARA) was established on March 9, 2022, to govern the new sector.

>> What is the role of Dubai’s VARA?

The Authority will be responsible for licensing and regulating the sector across mainland and free zone territories, excluding the Dubai International Financial Centre (DIFC). The