Dubai adopts new crypto law and establishes independent authority to regulate digital assets

On March 9, Dubai's prime minister and ruler Sheikh Mohammed bin Rashid Al Maktoum announced that Dubai will be adopting a new crypto law that would set a regulatory precedent for trading digital assets. According to the Sheikh, the new law is formed to govern and protect the traders.

• Furthermore, the Sheikh released a statement on Twitter: “We established an independent authority to oversee the development of the best business environment in the world for the virtual assets in terms of regulation, licensing, and governance and in line with local and global financial systems.”

• According to the new crypto law, Dubai citizens must register with VARA (The Dubai Virtual Asset Regulatory Authority) before engaging in crypto trading. The new law also claims that businesses engaging with digital assets must have a presence in Dubai.

• The Sheikh also addressed that excluding the Dubai International Financial Centre, VARA, the regulatory authority will oversee and supervise the Emirate's special development and free zones.

• The Sheikh further claimed that “approving the virtual asset law and establishing the Dubai Virtual Asset Regulatory Authority is a vital step that establishes the UAE’s position in this sector, a step that aims to help the sector to grow and protect investors.”

• As per the new law, The Dubai World Trade Centre’s board of directors will take the necessary decision if there is a breach in the law and individuals who breach the law will be charged a fine, and their business licence will be suspended or revoked.

The announcement has not clarified which particular crypto-asset would be included in the new crypto law. Over the last few years, the UAE has built a positive stance towards crypto and financial innovation.