Dubai has recently unveiled a new agency that will be responsible for regulating virtual assets and strengthening the city’s position in the evolving global digital economy, Mohammed bin Rashid Al Maktoum has announced on Twitter.
According to the government announcement, the Dubai Virtual Asset Regulation Authority (VARA) will operate as a subsidiary of Dubai World Trade Center and will focus on compliance, Dubai, Bitcoin and disclosure by virtual asset providers in the United Arab Emirates (UAE).
The watchdog will oversee the issuance of NFTs and other cryptocurrencies, monitor the protection of users’ personal data and monitor cryptocurrency platforms and digital wallets. The agency will also monitor suspicious crypto transactions and take measures to prevent market manipulation of crypto assets.
The new agency will also handle the cryptocurrency licensing regime within the country.
These crypto licenses will only be issued to companies that establish a representative office in the UAE. In addition to crypto exchanges, the Virtual Asset Regulatory Authority will also determine the activities of cryptocurrency vaults and asset managers.