The leadership of Dubai signed the “virtual assets law” earlier this week, establishing an independent authority to oversee the cryptocurrency business.
The law has been said to establish the regulatory position of the United Arab Emirates (UAE) in the industry.
The authority will “regulate the issuance and trade” of virtual assets and virtual tokens, while independently certifying “virtual asset service providers.” It will also manage the “operation” of virtual asset platforms and portfolios, including transaction monitoring and market manipulation prevention.
Binance partnered up with the Dubai World Trade Centre in December to create a comprehensive crypto zone to speed up industry acceptance. In the region, crypto has already seen some notable development.
Dubai’s NFT activity is currently double that of the rest of the world, and the city is home to many NFT-related developments.
As of last month, Dubai has a Dogecoin-themed Burger Joint where visitors may pay for food using cryptocurrency.
Whoever designs the future holds it, remarked Sheikh Mohammed bin Rashid Al Maktoum, UAE Prime Minister and Ruler of Dubai. He added that this is a step forward in the development of this sector and the protection of all investors.
“Operating and administering” virtual asset platforms, crypto to crypto exchanges, crypto to fiat exchanges, and crypto payment providers are all covered under the virtual asset law. In the ‘decentralized’ world, these are frequently the targets of regulation, as evidenced by the regulation surrounding the Russia/Ukraine conflict.
Following President Biden’s signing of the crypto executive order, both the UAE and the US are positioned for clearer regulatory requirements in the cryptocurrency industry.
Photo by ZQ Lee
