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Dubai receives its first law and regulation of Virtual Assets

MEDIA / Articles / Dubai receives its first law and regulation of Virtual Assets
Dubai adopted the new law regulating virtual assets, approved by his highness Sheikh Mohammed Bin Rashid. The new law known as The Dubai Virtual Assets Regulation Law (Law No. 4 of 2022) concerning the Regulation of Virtual Assets is aimed to establish advanced legal framework protecting the investors and set internationals standards for virtual asset international governance.

The law is aimed to promote business growth, and is applicable throughout the Dubai Emirates, includes special development zone but excludes the financial free zone that is Dubai International Financial Centre (DIFC).
 
Not very long time ago, Dubai World Trade Center Authority (DWTCA) and Securities and Commodities Authority (SCA) agreed to regulate and create a framework to provide appropriate permits/licenses for entities using crypto assets in Dubai.

Overall, such steps are a great thrust to UAE’s progress over the recent years and mark UAE’s commitment to building an environment which will drive long-term economic development in terms of digital innovation.

The new law also establishes the ‘Dubai Virtual Assets Regulatory Authority’ (VARA) which involves the task to:
  • Ensure highest standards of protection for beneficiaries’ personal data and organising the portfolios of virtual assets
  • Organise issuance and trade of virtual assets/tokens
  • Authorising virtual asset service providers
  • Transactions to be monitored and prevent price manipulation of virtual assets
It is pertinent to know that the Law No. 4 of 2022 dated 28 February 2022 (also known as ‘Dubai Virtual Assets Law’ or the ‘DVAL’) will be effective on its publication in the Official Gazette.
 
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