Dubai’s New Virtual Assets Law Explained
New Horizons Business Consultants
A reliable business advisory company for business setups, opening of corporate bank accounts and visas in the UAE.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and PrimeMinister of UAE and the Ruler of Dubai, approved a new law to regulate virtual assets in Dubai. The Dubai Virtual Asset Regulation Law, the first of its kind, provides an advanced legal framework of the highest international standards for virtual assets, meant to promote responsible growth in the field; while also safeguarding the interests of investors at the same time.
The Dubai Virtual Asset Regulatory Authority, established under the Dubai World Trade Center Authority, will be in charge of licensing, regulation, and governance of virtual assets which also include cryptocurrencies and Non-Fungible Tokens (NFTs). It is applicable throughout the emirate of Dubai, including free zones, but with the exception of the Dubai International Financial Centre. The Dubai Virtual Asset Regulation Law monitors digital transactions and protects the personal data of customers.
His Highness Sheikh Mohammed bin Rashid Al Maktoum said the future belongs to those who design it, and the Dubai Virtual Asset Regulation Law would shape the future of this rapidly-evolving sector. He added that Dubai possessed everything it needed to be one of the global hubs in the field, including an advanced legislative environment to oversee the sector. Dubai would provide the best ecosystem for virtual assets in terms of governance, security, and organization.
Activities that would be overseen by the Dubai Virtual Asset Regulatory Authority include
His Excellency Helal Saeed Al Marri, the Director-General of the Dubai World Trade CentreAuthority stressed that the new law and the Dubai Virtual Asset Regulatory Authority would make Dubai a leading destination in the virtual assets sector. It would work in coordination with the Securities and Commodities Authority and the Central Bank of the United Arab Emirates. Any business that engages in any activity that comes under the purview of the Virtual Asset Regulatory Authority must have a presence in Dubai.
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai inaugurated the regional headquarters of Meta, which was previously known as Facebook, at Dubai Internet City. Meta is betting big on the metaverse, which features Non-fungible Tokens as well as other virtual assets. The Dubai Multi Commodities Centre, which was named ‘Global Free Zone of the Year’ seven times by Financial Times, is already home to more than 230 blockchain companies.
FREQUENTLY ASKED QUESTIONS
What is a virtual asset?
A virtual asset is any digital token that has value and can be transferred, used as payment for goods and/or services, or traded. Virtual assets do include not the digital versions of fiat currencies.
领英推荐
What are popular virtual assets?
The most popular virtual assets are Non-Fungible Tokens (NFTs) and cryptocurrencies.
Can I trade in virtual assets without the permission of the Virtual Asset RegulatoryAuthority in Dubai?
No. It is illegal to trade in virtual assets without authorization from the Virtual AssetRegulatory Authority in Dubai.
What is the penalty for those who violate the Dubai Virtual Asset Regulation Law?
This shall be determined by the Board of Directors of the Dubai World Trade Centre. Depending on the offense, it may be a fine, suspension of the permit for up to six months, cancellation of the permit, or cancellation of the commercial license.
What are some examples of virtual assets?
Virtual land once sold as a Non-Fungible Token for more than $913,000 while a virtual nightclub fetched $635,000 and a game called Second Life was purchased for $50,000
Are there any risks involved in the trading of virtual assets?
There is a lot of volatility in the sector. At the time of writing, Bitcoin surged 9% following political developments in Europe while it had fallen by a similar percentage only two weeks back. Owing to the sector being largely unregulated, there are reports that virtual assets are used for money-laundering proceeds from crime as well as being used for terror financing. Providers of services related to virtual assets thus find it difficult to open corporate bank accounts. The United Arab Emirates seeks to change all this.
New Horizons Business Consultants is a provider of business setup services and corporate banking solutions in Dubai, United Arab Emirates. It is headed by Francesca Bouwman, who has years of experience in International Business Advisory and fluently speaks several European languages. For more information, please call +971 58 500 8643 or email: [email protected]