Virtual Assets in UAE

WHAT ARE VIRTUAL ASSETS?

A virtual asset is a digital representation of value that can be transferred online for the purpose of payments and investment. There are different types of virtual assets, such as crypto currencies, NFTs (Non-Fungible Tokens) and security tokens.

• Law no (4) of 2022 mentions about regulating virtual assets in emirate of Dubai. The law came into effect on 11th March 2022 and launched the Dubai Virtual Assets Regulatory Authority, or VARA.


• The authority oversees the virtual asset sector across the emirate, including special development zones and free zones, with the exception of the Dubai International Financial Centre.


• New regulatory body emerged known as VARA (virtual asset regulatory authority)


• VARA is affiliated to the Dubai World Trade Centre Authority (DWTCA).


• DWTCA is the competent entity in charge of regulating, supervising, overseeing virtual assets & VA activates can be regulated in all zones across the Emirates of Dubai, including special development zone & free zones but excluding Dubai International Financial center.


• The issuance of anonymity enhanced crypto currencies & all VA activity related to them are prohibited.


• Virtual asset activity can be performed in way of business or any purpose, only if it is licensed by VARA.

• Duly registered professional practicing lawyers, accountants, other professionally licensed business consultants that carry out VA activity in a manner that is wholly incidental to the professional are exempted for licensing by VARA


• The digital assets are governed by the financial action task force (FATF) which is an international government body preventing money laundering & territory financing. They ensure that virtual ad sets are treated fairly, applying the same safeguards as the financial sectors.


• All market participants, whether licensed by VARA or not must adhere to the marketing and promotion regulation.