- VARA has released the “Full Market Product Regulations,” a set of guidelines.
- The laws also provide direction on other areas, such as the issuance of digital assets.
New regulations for virtual asset service providers (VASPs) in Dubai have been announced by the Virtual Asset Regulatory Authority (VARA). It is the government body in charge of regulating cryptocurrencies there.
Irina Heaver, a lawyer specializing in blockchain and cryptocurrencies located in the United Arab Emirates. She has informed that VARA has released the “Full Market Product Regulations.” A set of guidelines for running VASPs that comprises four mandatory rulebooks and activity-specific rulebooks. Except for those operating in the free zone of the Dubai International Financial Centre (DIFC). All market players in Dubai must adhere to the guidelines.
Covers Various Divisions
The Dubai regulator also emphasized that all market players, whether or not they are VARA-licensed, must follow laws for marketing, advertising, and promotions, in addition to the rulebooks. Furthermore, repeat offenders may face a fine of up to $135,000 (500,000 dirhams), with the range being between $5,500 (20,000 UAE dirhams) and $55,000 (200,000 dirhams).
Apart from this, the laws also provide direction on other areas, such as the issuance of digital assets. Heaver claims that the latest version of VARA has numerous important insights. As an example, merchants with a trading capital of above $250 million are obliged to register with VARA, and the issue of privacy coins is banned in Dubai.
Fees for advisory services, licensing, and yearly monitoring of custody, exchanges, broker-dealers, and loan services are also outlined in the regulation. Moreover, depending on the specifics of the services, the price might range from $11,000 (40,000 dirhams) to $55,000 (200,000 dirhams).
