In his capacity as the Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, has issued the Dubai Virtual Asset Regulation Law to protect investors and govern the virtual assets industry – a move that experts within the industry believe is both timely and necessary to spur growth with the virtual assets sector.
The newly established Dubai Virtual Asset Regulatory Authority (VARA) will regulate, supervise, and control virtual asset services.
The authority will set the rules and controls that govern the conduct of virtual assets activities, including management, clearing, and settlement services, as well as classifying specifying types of virtual assets.
UAE, US to “become leaders in the adoption, regulation of digital assets”
By creating an government-led authority and infrastructure to measure and facilitate the growth of virtual assets, the UAE is keeping itself ahead of most of the world.
Sharing her thoughts in an statement to Arabian Business, the founder of Jensen Matthews PR and Finsight News, Loredana Matei, said: “The significance of the new UAE digital assets law reflects the growth of this sector in the UAE and in the region.
“Even more so, the law comes on the same day as the new US Executive Order that sets the framework for cryptocurrencies. This signals that both the UAE and the US are becoming the leaders in the global adoption and regulation of digital assets.”
On Wednesday, US President Joe Biden also signed an executive order to push for government oversight of cryptocurrency.
The executive order will explore whether the US government can launch a US digital currency.
Federal agencies from the US Treasury to the Commerce Department will have to research a number of topics, including one led by Treasury on the future of money and payment systems, and another from the Justice Department on the role of law enforcement agencies in detecting, investigating, and prosecuting crypto-related criminal activity, Bloomberg reported.
Impact of Dubai’s virtual assets law on start-ups and real estate
The approval of the virtual assets law and the establishment of the Dubai Virtual Assets Regulatory Authority is a step ahead for Dubai.
“The city remains at the forefront of emerging technologies and aligns with how the world is developing,” said Lewis Allsopp, the CEO of Allsopp & Allsopp.
“In my opinion, this will have an impact on business start-ups and established businesses opening offices in Dubai, innovation, creation, and so much more, which proves again that Dubai’s vision is set on the advancement for the future.”
The virtual assets law and the new regulatory authority is also likely to be welcomed by UAE residents, investors, and open up the Dubai property market.
“The real estate and holiday home industries are sure to benefit greatly. I predict this will entice property investors who can buy property with their cryptocurrency.”
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