Dubai's cryptocurrency regulator issues new rules for metaverse, virtual assets
New laws in Dubai define the rules for trading virtual assets and operating in the metaverse, including explain how to lend/borrow and remit virtual assets — as well as fines for some violations.
Dubai’s Virtual Assets Regulatory Authority (VARA), the regulator overseeing cryptocurrency laws in UAE's largest city, announced updated regulations this week aimed at building its virtual asset industry, while also combating ongoing illicit financial activities in virtual space.
The new regulations cover seven broad virtual asset activities ranging from lending and borrowing services to management and investment services, with the goal of building protections to increase investor confidence and market growth in Dubai.
The new regulations contain rulebooks and guides explaining terminology, fees necessary to conduct virtual financial activities, and fines for violations that can add up to more than $13 million.
Helal Saeed Almarri, a chairman of VARA’s executive board and the director general of Dubai’s Department of Economy and Tourism, stated that the mission is to establish the emirate as leader in digital finance.
