The Virtual Asset Regulatory Authority (VARA), the regulatory body responsible for overseeing cryptocurrency laws in Dubai, has issued new guidelines for virtual asset service providers (VASP) operating within the emirate.
According to the post of Irina Heaver, a crypto and blockchain lawyer based in the United Arab Emirates, on her Twitter account, VARA has published the “Full Market Product Regulations” that set the rules for the operation of virtual asset service providers.
Dubai Focuses on Virtual Asset Service Providers
The published guidelines will only apply to market participants in Dubai, excluding those operating under the Dubai International Financial Center (DIFC), a self-regulatory free zone.
In addition to the guidelines, the Dubai regulator underlined that all market participants, whether VARA licensed or not, must comply with marketing, advertising and promotion regulations. According to the information shared, those who violate these rules will be fined between $5,500 and $55,000. Repeat violators can be fined up to $135,000.
According to the data released, platforms with a commercial capital of over $250 million must register with VARA. The regulation will also set annual audit fees for consulting services. These fees can also range from $11,000 to $55,000, depending on the services.
Irina Heaver Made Some Comments
⚠️Dubai News
Dubai's Vurtual Assets and Regulatory Authority issued the long-awaited Full Market Regulations for Vurtual Assets Services Providers (VASPs).
— Irina ₿. Heaver (@IrinaHeaver) February 7, 2023
Commenting on the development, Heaver told Cointelegraph that it is good for VARA to provide clarity for the crypto market, adding: “Regulatory certainty has been good for consumers, investors and the Emirate of Dubai. It was long awaited and welcomed.”
Heaver also added that while VARA has broad mandate to interpret and implement regulations as it sees fit, he believes and trusts that this interpretation and implementation will be in line with Dubai’s leadership spirit.
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