The Digital Asset Regulatory Authority (VARA), the regulator accountable for overseeing cryptocurrency legal guidelines inside Dubai, has issued new tips for digital asset service suppliers (VASPs) working throughout the emirate.
Based on Irina Heaver, a crypto and blockchain lawyer primarily based within the United Arab Emirates, VARA has issued its “Full Market Product Rules,” which embody 4 obligatory rulebooks and activity-specific rulebooks that lay down the foundations for working VASPs. The principles solely apply to market individuals inside Dubai, excluding these working underneath the Dubai Worldwide Monetary Centre (DIFC), a free zone with its personal regulator.
⚠️Dubai Information
Dubai’s Vurtual Property and Regulatory Authority issued the long-awaited Full Market Rules for Vurtual Property Companies Suppliers (VASPs).
— Irina ₿. Heaver (@IrinaHeaver) February 7, 2023
The Dubai regulator additionally highlighted that each one market individuals, whether or not they’re licensed by VARA or not, should adhere to rules for advertising, promoting and promotions rules. Violators can be fined between 20,000 dirhams ($5,500) and 200,000 dirhams ($55,000), and repeat offenders might see fines as excessive as 500,000 dirhams ($135,000).
The rules additionally give steering on different issues, such because the issuance of digital belongings. Based on Heaver, there are a number of takeaways from the brand new replace from VARA, together with that issuing privateness cash is prohibited in Dubai and merchants with buying and selling capital above $250 million are required to register with VARA.
The regulation additionally units charges for advisory providers, licensing, and annual supervision for custody, exchanges, broker-dealers and lending providers. The charges vary from 40,000 dirhams ($11,000) to 200,000 dirhams ($55,000), relying on the providers.
Associated: Lawyer explains new federal digital asset regulation within the United Arab Emirates
Commenting on the brand new improvement, Heaver instructed Cointelegraph it’s an excellent factor that VARA offered readability for the crypto area, explaining:
“Regulatory certainty is excellent for enterprise. It’s good for customers, buyers and for the Emirate of Dubai. The rules are long-awaited and principally welcomed.”
Heaver added that though VARA has a broad authority to interpret the rules and apply them in the best way it sees match, she believes and trusts that such interpretation and utility can be achieved according to “the spirit of Dubai’s management,” which considers enterprise acumen and fostering entrepreneurship.
