Sheikh Mohammed announces first-of-its-kind Law for Virtual Assets

Published: March 10, 2022
Updated: April 2, 2022
Sheikh Mohammed

The world of virtual assets is exploding! It’s all about investing in non-fungible tokens and cryptocurrencies (NFTs).

That is why HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, has adopted a groundbreaking virtual assets law.

In addition, the Dubai Virtual Assets Regulatory Authority has been established to oversee all virtual assets.

The new Authority, which will work with all connected authorities to provide maximum openness and security for investors, will be established under the Dubai World Trade Center Authority. It will be in charge of virtual assets,non-fungible tokens (NFTs), and cryptocurrencies regulation, licensing, and governance. It will also protect users’ personal information and keep track of digital transactions.

Sheikh Mohammed Law for Virtual Assets

•Organizing the issuance and trade of virtual assets and virtual tokens will be the Authority’s responsibility.

• Organizing and approving virtual asset management service providers

•Organizing the operation of VA platforms and portfolios, ensuring the highest standards of protection for beneficiaries’ personal data.

•Keep an eye on transactions to ensure that VA prices aren’t manipulated.

Dubai’s ruler, Sheikh Mohammed Bin Rashid, said on Wednesday that the emirate has passed its first legislation governing virtual assets and formed a regulator to regulate the industry.

Also Read Sheikh Mohammed Announces Opening Date For Dubai’s Museum of the Future (MOTF)

As regional economic competition heats up, the United Arab Emirates, a federation of seven emirates and the region’s financial powerhouse, has been trying to establish virtual asset regulation in order to attract new types of enterprise.

Virtual assets include cryptocurrencies and non-fiat currencies, although the notification did not clarify which assets would be included by the new rule.

Sheikh Mohammed stated in a statement broadcast by state media that the Dubai Virtual Asset Regulation Law intends to promote Dubai and the UAE as regional and global destinations for the virtual assets industry.

According to him, the Dubai Virtual Assets Regulatory Authority would oversee the growth of the virtual asset business environment in terms of regulation, licensing, and governance.

Except for the state-owned financial free zone DIFC, the new rule will apply across Dubai. The Dubai Financial Services Authority (DFSA), the DIFC’s regulator, is working on its own virtual asset legislation.

The first section, which covers digital tokens, was issued in October, and this week, the DFSA began a consultation on crypto token regulation, which includes cryptocurrencies.

The UAE’s Securities and Commodities Authority (SCA) announced on Tuesday that the country is moving closer to adopting virtual asset investing regulations. 

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