Binance welcomes this new set of regulatory guidelines that focus on safeguarding users and investors while supporting the development of …
The Dubai Virtual Assets Regulatory Authority (VARA) released regulatory guidelines for the local cryptocurrency market on February 7, 2023, outlining ten guiding principles for the sector, including licencing requirements, marketing guidelines, obligations regarding anti-money laundering, and a prohibition on cryptocurrencies with increased anonymity like Zcash and Monero.
The new rules mandate that major proprietary traders who invest $250 million or more in the cryptocurrency industry register with VARA and that virtual asset service providers obtain a VARA licence. The fee guidelines for the services rendered by the brokers will be established by VARA. Up to $13.6 million in fines and the right to withdraw the associated firms’ licences from VARA are the consequences of violations.
A sort of virtual asset that “hinders the tracking of transactions or ownership through the use of distributed public ledgers” and for which “there are currently no existing technologies or procedures for service providers to trace or identify ownership” is what Dubai classifies as anonymity-enhanced. To control the trade of these currencies, the government has put rules in place.
According to VARA, the new rules are in effect not only in Dubai but also in the Free Zone and the Special Development Zone (except for the Dubai International Financial Centre, DIFC, which is regulated by another agency).