The concept of cryptocurrency and digital assets is gaining global recognition in recent times. It is emerging as a profitable investment class, as well as a reliable and effective payment or transaction gateway. This is why more countries are showing an interest in the use of digital assets. Recently, Dubai has also moved to develop a favorable stance on the use of virtual assets.
With the approval of the Vice-President and the Prime Minister of UAE and the Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, an initial crypto law has been passed in the country. The passed law aims to make Dubai a strong hub for virtual assets. It will also help in the growth of the state’s business community in the longer run.
Dubai plans to create a regulatory and licensing body
Sheikh Mohammed tweeted the passing of the bill. He stated that “Today we are participating in designing the future of virtual asset globally.” He also emphasized that Dubai has the capability to become a global center for virtual assets and reshape the future of this industry.
Dubai now aims to provide the required ecosystem and infrastructure for virtual assets like cryptocurrencies. The ecosystem mainly comprises governance, organization, and security. Experts and crypto enthusiasts have welcomed the new development in Dubai. They believe that the passing of the bill and the formation of the Dubai Virtual Asset Regulatory Authority (VARA) will go a long way in propelling the growth of the sector and its investors.
VARA is an affiliate of the Dubai World Trade Centre and it will supervise the regulatory process of virtual assets. It will also map out the future growth mechanism of virtual assets in the UAE. Moreover, the authority will provide licenses to the service providers, while securing the confidential data of the users.
The formed authority will also be responsible to organize and settle the governing rules of virtual assets and their activities. It will classify different types of virtual assets for the ease of users. Only those people who have a presence in Dubai will be allowed to engage in virtual asset activities.
Apart from Dubai, Abu Dhabi has also stayed active in formulating a crypto-friendly framework. Both emirates of the UAE suggest that the country is hopping on the crypto bandwagon gradually. The crypto community if the region is pleased with the newly introduced bill, and it might mark a new beginning for Dubai’s virtual asset industry.
