Dubai’s VARA adds greater customer protection to dealings in Bitcoin, other cryptocurrency

Dubai’s VARA adds greater customer protection to dealings in Bitcoin, other cryptocurrency

Dubai: Anyone using Bitcoins or cryptocurrencies to pay for a property purchase - or any other retail transaction, for that matter – need to be extra careful about being in compliance with tightened up rules on virtual assets.

As Dubai ramps up guidelines on virtual asset usage, consumers get to have greater protection in all such dealings where virtual assets are used.

“To ensure compliance, businesses and individuals should understand the new guideline specifics for crypto usage in these contexts (in B2C transactions),” said Niraj Jain, UAE Practice Lead at Indigenesis Consulting.

“It's crucial to align with the FATF (Financial Action Task Force) standards on anti-money laundering and combatting financing of terrorism (AML/CFT).”

In other words, there will be the same onerous requirements that would typically happen in dealings through a banking sector. When Bitcoins and other cryptocurrencies are transacted – whether it’s paying for a hotel stay or buying a latte – the onus is on the business and individual involved that all boxes are ticked.

Dubai’s VARA (Virtual Asset Regulatory Authority) is upping the compliance processes and widening the coverage for its rules. Last week, in alliance with Dubai Department of Economy & Tourism, it will ‘deploy end-to-end processes to ensure market-leading consumer