Prime Minister of the United Arab Emirates, Sheikh Mohammed bin Rashid Al Maktoum announced a new law on virtual assets and the development of a new crypto regulatory agency on Wednesday.
UAE, in its bid to become a global leader in the emerging sector of cryptocurrency, has introduced a new law that intends to create a legal framework for crypto-related activities to take place in the region.
UAE Introduces A New Crypto Law And A Virtual Asset Regulatory Body
In an official announcement made on Wednesday, the prime minister of UAE, Sheikh Mohammed bin Rashid Al Maktoum established a law that intends to create a legal framework to support cryptocurrency. The law also aims to protect consumers against any financial mishaps, and provide “international standards for the virtual asset industry governance.”
“The future belongs to whoever designs it … and today, through the virtual assets law, we seek to participate in the design of this new and rapidly growing global sector,” Sheikh announced via Twitter.
The prime minister also announced the establishment of a newly formed Virtual Asset Regulatory Authority or VARA to oversee crypto-related activities in the region.
“We established an independent authority to oversee the development of the best business environment in the world for the virtual assets in terms of regulation, licensing, governance and in line with local and global financial systems,” Sheikh Mohammed bin Rashid Al Maktoum said on Twitter.
According to Sheikh Mohammad Maktoum, the new crypto law will require the citizens of Dubai to register with VARA before they participate in any crypto-related activity. The activities may include operating a crypto exchange, transferring cryptocurrencies, or other services related to token trading.
The announcement further highlights the power that VARA will bear over cryptocurrency regulation, stating that the agency will be responsible for classifying and specifying the types of virtual assets. Moreover, the agency will also be able to set rules and practice control over crypto activities.