Dubai adopts first virtual asset law, establishes regulator

Reuters | Dubai

The Daily Tribune – www.newsofbahrain.com

The emirate of Dubai has adopted its first law governing virtual assets and established a regulator to oversee the sector, its ruler Sheikh Mohammed Bin Rashid said yesterday.

The United Arab Emirates, a federation of seven emirates and the region’s financial capital, has been pushing to develop virtual asset regulation to attract new forms of business as regional economic competition heats up.

Virtual assets generally encompass products including cryptocurrencies and NFTs, but the announcement did not specify which assets would come under the new law.

The Dubai Virtual Asset Regulation Law aims to position Dubai and the UAE as regional and global destinations for the virtual assets sector, Sheikh Mohammed said in a statement carried out by state media.

The Dubai Virtual Assets Regulatory Authority will oversee the development of the business environment for virtual assets in terms of regulation, licensing and governance, he said.

The new law will apply throughout Dubai except for the state-owned financial free zone DIFC.

DIFC’s regulator, the Dubai Financial Services Authority (DFSA), is working on its regulation for the virtual asset sector.

In October, DFSA released the first part which governs digital tokens, and this week launched a consultation on regulation for crypto tokens, which includes cryptocurrencies.

The UAE as a whole is getting closer to issuing virtual asset investment regulation, the UAE’s Securities and Commodities Authority (SCA) said on Tuesday