The UAE has adopted a law on virtual assets (crypto assets)

In the UAE, the Emirate of Dubai signed the first of its kind law regulating the turnover of virtual assets - Dubai Virtual Asset Regulation Law. The law is aimed at creating an advanced legal environment for the protection of investors and the introduction of international standards for regulating the industry.

A special regulator of the Emirate of Dubai is being created, the types of activities for which a corresponding license will be required are determined.

The Dubai Virtual Asset Regulatory Authority (VARA) will be the regulator, and its control will focus on this emirate, special development zones and free zones (with the exception of the Dubai International Financial Centre). VARA will coordinate with the Dubai World Trade Centre Authority (DWTCA), the Central Bank and the UAE Securities Commission.

The powers of VARA include the organization of control and the establishment of rules for doing business with virtual assets, which includes management, clearing and settlement services. VARA will classify and designate types of virtual assets.

Conducting activities with crypto assets in the emirate will require the permission of the regulator, while the business will need to have a presence in Dubai.

Types of activities with crypto assets that require a license:

• Management of platform services and their maintenance
• Crypto-Crypto Exchange Services
• Crypto-Fiat Exchange Services
• Transfer services
• Custody and management services
• Portfolio management services
• Services related to offering and trading virtual tokens

Violation of the established rules will be punished with fines, the license may also be suspended or revoked, which means a ban on conducting activities in these areas.

Detailed requirements, terms and procedure for obtaining licenses will be set by the Dubai regulator. We will be happy to help with all the necessary formalities to start operating in the UAE now and under the new rules for crypto business in Dubai.