Dubai’s VARA issues regulations for Virtual Assets
Dubai’s Virtual Asset Regulatory Authority (VARA) has officially released the much-anticipated Virtual Assets and Related Activities Regulations 2023. This comprehensive regulatory framework is designed to govern the rapidly growing virtual assets sector in Dubai, ensuring it operates within a clear, structured, and secure environment.
Seven Key Licensed Activities
The regulations cover seven key licensed activities related to virtual assets, which are crucial for any entity operating in this space. These activities include:
- Advisory services
- Broker-Dealer services
- Custodial services
- Exchange services
- Lending-Borrowing services
- Payments and Remittances services
- VA Management and Investment services
Regulation of Virtual Asset Issuances
Beyond the seven categories of licenses, the new regulations also address the issuance of virtual assets, ensuring that this process is fully regulated under the VARA regime. This inclusion highlights Dubai’s commitment to creating a comprehensive and forward-thinking regulatory environment for virtual assets, aligning with global standards and practices.
Mandatory Rulebooks for Compliance
In conjunction with these regulations, VARA has published four compulsory Rulebooks that all virtual asset service providers must adhere to. These Rulebooks cover essential areas such as Company, Compliance & Risk Management, Technology & Information, and Market Conduct. Additionally, there are activity-specific Rulebooks tailored for each of the seven licensed activities, providing detailed guidelines for compliance.
Conclusion
Cavenwell 3.0, a prominent consultancy in the virtual asset space, offers support to both established Virtual Asset Service Providers (VASPs) and new market entrants. Their services aim to help these entities navigate and achieve compliance with the newly established rules, ensuring they can operate effectively within Dubai’s regulated virtual asset market.
