The UAE Cabinet this week introduced a new regulation and an independent regulatory authority for virtual assets and virtual asset service providers – a move which marks the state’s first regulatory regime for the sector at the federal level.The UAE is poised to emerge as the first choice for global companies in the digital asset business for their global expansion, following the Gulf country approving a new regulation to govern virtual assets in the country, sector experts said.
The new regulatory framework is also expected to fuel the mainstream adoption of blockchain applications for economic growth in the region.Several global and regional companies in the blockchain, crypto and NFT (non-fungible token) segments are hurriedly finalising plans to enter or expand their operations in the country in the next few months, industry insiders said. The UAE Cabinet this week introduced a new regulation and an independent regulatory authority for virtual assets and virtual asset service providers – a move which marks the state’s first regulatory regime for the sector at the federal level.
The Dubai Virtual Asset Regulation Law and the Dubai Virtual Assets Regulatory Authority (VARA) would oversee the growth of the virtual asset business environment including regulation, governance and licensing.The new regulation is expected to come into effect on 15 January 2023. “We are delighted to see the UAE moving towards a more mature regulatory framework for the digital asset industry. The advanced regulations at the federal level will make UAE the first choice for global companies in the digital asset business for their global expansion,” Mahin Gupta, founder of Liminal, a Singapore-based digital wallet infrastructure platform with operations in UAE, told Arabian Business. The latest regulatory framework will facilitate the efforts of the authorities to create a compliant and progressive regime in the UAE for global crypto companies to build compliant blockchain applications to fuel mainstream adoption and economic growth in the region,” Gupta said.
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