Dubai has become an important center for cryptocurrency, whether it comes to investors or creators.

Dubai has previously hosted many international conferences related to the crypto industry last year, in addition to announcing the “Crypto Expo” that will be held in the coming days.

As the financial capital of the Middle East, the UAE is the third largest crypto market in the region, after Turkey and Lebanon, according to data compiled by Chainalysis from July 2020 to June 2021.

Sheikh “Mohammed bin Rashid” indicated that the aim of the recent announced regulations is to consolidate the position of the UAE and Dubai as a major player in designing the future of virtual assets worldwide.

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Today, we have adopted the Virtual Asset Law and established the Dubai Virtual Asset Regulatory Authority. A step that establishes the position of the UAE in this sector. The Authority will cooperate with all relevant authorities to ensure maximum transparency and safety for investors. pic.twitter.com/LuNtuIW8FM

– His Highness Sheikh Mohammed (HHShkMohd) March 9, 2022

Meanwhile, Binance, the largest cryptocurrency exchange by volume, is also looking to obtain a license in Dubai.

Amid its expansion in the Middle East, Binance has received approval to become a crypto services provider by the Central Bank of Bahrain.

With the new rules announced in Dubai, the Virtual Asset Regulatory Authority in Dubai will mandate and monitor the operation and management of crypto platforms, custody of virtual assets, as well as monitoring price manipulation.

Among other roles, investor data protection will also be under the supervision of the Dubai regulator.

The announcement comes a day after the UAE Securities and Commodities Authority announced that there is a new framework that will ensure AML/CFT compliance across the region.

The authority indicated that it includes eliminating the risks of money laundering and terrorist financing, in addition to adhering to the recommendations and requirements of the Global Financial Action Task Force (FATF).

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It is worth noting that the Securities and Commodities Authority is the only authority that supervises activities and services related to virtual assets in the UAE.

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In order to ensure effective regulation and monitoring, the “VARA” authority will supervise the virtual assets space in Dubai, but it does not operate in the areas under the state-owned financial free zone “DIFC”, according to what was reported by “Reuters”.

Helal Saeed Al Marri, Director General of Dubai World Trade Centre, said:

The new law and the appointment of a regulator for the sector will enhance the position of the UAE and Dubai by attracting world leaders in this industry.

The Dubai Virtual Asset Regulatory Authority will provide a full range of virtual asset services in coordination with the Central Bank of the UAE and the Securities and Commodities Authority.

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