Dubai builds a virtual asset framework

On February 14, the Dubai Virtual Assets Regulatory Authority (VARA) issued the Regulations on Virtual Assets and Related Activities in 2023, and formulated a comprehensive virtual assets framework to support economic sustainability and cross-border financial security. The framework will provide regulatory certainty for the market by mandating Dubai’s licensed entities to adopt gold standard risk assurance and anti-money laundering (AML) standards. The seven licenses under the VARA system include advisory services, broker-dealer services, custody services, trading services, lending services, payment and remittance services, and VA management and investment services. Issuance is also a regulated activity under the VARA system, allowing consumers to make more informed decisions about the new tokens launched in Dubai and the relevant obligations of the issuer.

Interpretation of this information:

The Dubai Virtual Assets Regulatory Authority (VARA) has established a comprehensive framework for virtual assets and related activities, aimed at promoting economic sustainability and cross-border financial security. The regulations mandate licensed entities in Dubai to adopt gold standard risk assurance and anti-money laundering (AML) standards. The VARA system includes seven licenses, covering advisory services, broker-dealer services, custody services, trading services, lending services, payment and remittance services, and VA management and investment services. In addition, issuance is also a regulated activity under the VARA system, which ensures consumers have the information required to make informed decisions about new tokens launched in Dubai and the issuer’s obligations.