The Digital Asset Regulatory Authority (VARA), the regulator in control of overseeing cryptocurrency legal guidelines inside Dubai, has issued new pointers for digital asset service suppliers (VASPs) working throughout the emirate.
In accordance with 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 beneath 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 and marketing, promoting and promotions rules. Violators will likely 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 steerage on different issues, such because the issuance of digital belongings. In accordance with 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 companies, licensing, and annual supervision for custody, exchanges, broker-dealers and lending companies. The charges vary from 40,000 dirhams ($11,000) to 200,000 dirhams ($55,000), relying on the companies.
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Commenting on the brand new improvement, Heaver informed Cointelegraph it’s a very good factor that VARA offered readability for the crypto house, explaining:
“Regulatory certainty is superb for enterprise. It’s good for customers, buyers and for the Emirate of Dubai. The rules are long-awaited and largely 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 will likely be accomplished in keeping with “the spirit of Dubai’s management,” which considers enterprise acumen and fostering entrepreneurship.