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It became known that on March 9, a new regulatory body for the digital currency industry was created in Dubai (UAE). The supervisory institution announced the release of a law on cryptocurrencies. The institution will now have authority over Dubai Special Development Zones and Free Territories. The exception is the Dubai International Financial Center (DIFC).
This decision was announced by Sheikh Mohammed bin Rashid Al Maktoum, who holds the position of Prime Minister and Ruler of the United Arab Emirates. He emphasized that the UAE now has a regulatory framework for the cryptocurrency market. The Dubai Virtual Assets Regulatory Authority (VARA) will make decisions to monitor digital currencies and control their movements.
According to the sheikh, this should help the sector grow, and is also designed to protect the interests of investors. The new management will cooperate with other financial institutions to ensure maximum transparency and investor safety.
From now on, all companies that want to engage in cryptocurrency activities will be required to register with VARA. This will apply to trading platforms, as well as any startups offering services related to the issuance or exchange of virtual currencies and earnings through investments in tokens.
Representatives of VARA created a classification according to which the organization will determine the types of digital assets in addition to establishing rules and controls.
Anyone found to be in violation of the new law could be fined and have their business license suspended or revoked in the country.
Earlier, the Crypto.ru editors reported that the Dubai authorities declared the Dubai World Trade Center (DWTC) a comprehensive trading zone and endowed this institution with the status of a financial regulator for the digital currency industry.
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