Dubai Passes Its First Virtual Assets Law (VAL)
The Dubai Government has introduced the first Virtual Assets Law that covers the regulation of Virtual Assets (VAL) and established the Dubai Virtual Assets Regulatory Authority (VARA). Producing a new legal framework to regulate virtual assets expresses Dubai’s vision to establish its position as a global leader in the future of virtual assets. Under VAL, VARA aims to promote Dubai as the most sought-after destination in the virtual assets domain and to develop Dubai’s digital economy. Virtual Assets Law (VAL) defines “virtual asset” as a “digital representation of value which can be digitally traded or transferred or used as an exchange or payment tool or for investment purposes” and defines “virtual token” as a “digital representation of a group of rights which can be issued and traded digitally through a virtual asset platform (a platform operated by a virtual asset provider licensed by VARA)”.
Responsibility Of Virtual Assets Regulatory Authority (VARA) In Achieving The Goals Of The Virtual Assets Law (VAL)
VARA will be responsible for organising issuance and trading of virtual assets and virtual tokens; organising and authorising virtual asset service providers; ensuring the highest standards of protection for beneficiaries’ personal data; organising the operation of virtual assets’ platforms and portfolios; monitoring transactions and preventing price manipulation of the virtual assets. VARA will be responsible for licensing and regulating the virtual asset sector across Dubai (mainland and free zone territories, excluding activities related to virtual assets in the Dubai International Finance Centre – DIFC).
Virtual Asset Related Business Activities Subject To Authorisation From VARA
- Operating and managing virtual assets’ platforms services;
- Exchange services between virtual assets and currencies, whether national or foreign;
- Exchange services between one or more forms of virtual assets;
- Virtual assets’ transfer services;
- Virtual assets’ custody and management services;
- Services related to the virtual assets’ portfolio;
- Services related to the offering and trading of virtual tokens.
How Can Wincore Support In Virtual Assets Licensing?
Choosing an appropriate license for your virtual assets business needs can seem challenging and confusing to navigate. Therefore, it is worth investing in effective and expert advisory very early on, to be assured that you are on the right track. Our experts are committed to advising and supporting you throughout the process from the beginning to the end and enable you to make informed decisions that satisfy your business requirements. You can get in touch with our Corporate Team today, or book a free consultation with one of our experts today to get started.
For Support and assistance on this matter get in touch with our Corporate Team today.
Wincore specializes in Tax, Estate, Corporate and Fiduciary matters. We provide pragmatic, flexible, and efficient solutions to individual entrepreneurs, startup businesses, foreign and local SMEs, multinationals, wealthy international families, HNWIs, and UHNWIs.