The Emirate of Dubai Virtual Asset Regulatory Authority (VARA) has revised its legislation for crypto custody services. According to the updated legislation, it was possible for companies with crypto asset custodians to provide staking services. Thus, companies providing crypto custody services do not need to obtain an additional license for staking activity.
VARA’s simplified cryptocurrency legislation will also allow small startups to operate in the region. According to the old directive, companies applying for different licenses faced huge time and financial costs. This move demonstrates that the UAE is encouraging investors in digital spaces to invest in its country.
The emirate has become a major crypto hub in recent months thanks to low tax and crypto-friendly laws. Realizing that oil resources will run out one day, the politicians of the region are trying to invest in models that will generate sustainable income.
What is Staking?
Crypto staking is the process of making a contribution by verifying the transactions of the network by keeping a particular crypto asset in the wallet. Staking bears significant similarities to bank deposits in general finance. In bank deposits, customers earn interest income by renting their money to the bank. In the staking tool, individuals earn additional rewards by participating in the verification process of transactions in the crypto ecosystem.
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