Dubai’s Virtual Assets Regulatory Authority (VARA) issued regulations to address VA industry in the UAE

Kuwaiti regulators have announced that all types of virtual currency transactions have been banned.

According to reports, officials have banned the use of virtual assets as a means of payment, asking everyone to avoid transactions related to virtual currencies. The ban applies to all virtual currency or mining-related activities following the release of a study by the Kuwait Committee to Combat Money Laundering and the Financing of Terrorism. The source said that there are many risks in the trading of virtual assets, especially cryptocurrencies such as bitcoin, ethereum and Dogecoin, which do not have legal status and are not supported by the government. The prices of these cryptocurrencies are highly volatile, driven by speculators, which can cause a sharp drop in price, posing significant risk to investors.

However, Dubai’s Virtual Assets Regulatory Authority (VARA), has issued its Virtual Assets and Related Activities Regulations 2023. The Regulations set out a comprehensive Virtual Assets (VA) Framework built on principles of economic sustainability and cross-border financial security.

VARA is the world’s first, tailor-made Virtual Asset regime, and as such, its Full Market Product (FMP) Regulations are designed to specifically cater for the provision of permissible activities and services to customers and investors, from the emirate of Dubai. Published on: 7 February 2023 pursuant to the final approval of the Board of Directors, in accordance with Law No. (4) of 2022 Regulating Virtual Assets in the Emirate of Dubai. The definition of Virtual Assets is set out in Law No. [4] of 2022 Regulating Virtual Assets in the Emirate of Dubai.

VARA reserves the right to modify, refine, adjust, and/or expand these regulations on a regular basis at its sole and absolute discretion, to remain resilient and progressive in its ability to address emerging and continually evolving developments across the global VA industry.

How MBG can help?

• It is pertinent of note that to start a virtual asset trading business in Dubai, you need a license from VARA. We can provide you with the latest legal advice, industry guidelines and help you with the licensing process. Provide regular legal updates on the applicable laws.