Dubai Releases Regulations For VASP
The Virtual Asset Regulatory Authority (VARA), the Dubai-based regulator in charge of enforcing cryptocurrency laws, has issued new guidelines for virtual asset service providers (VASP) operating in the emirate.
VARA has issued the “Full Market Product Regulations,” which include four mandatory rulebooks and activity-specific rulebooks that lay out the rules for operating VASPs, according to information sent by Irina Heaver, a crypto and blockchain lawyer based in the United Arab Emirates. The rules apply only to market participants in Dubai, with the exception of those operating under the Dubai International Financial Centre (DIFC), a free zone governed by its own regulator.
In addition to the rulebooks, the Dubai regulator stressed that all market participants, whether licenced by VARA or not, must follow marketing, advertising, and promotion regulations. Violators will be fined between $5,500 and $55,000, with repeat offenders facing a fine of up to $135,000.
In addition to these, the regulations provide guidance on other issues, such as the issuance of virtual assets. According to Heaver, there are several takeaways from the new VARA update. This includes the prohibition of the issuance of privacy coins in Dubai and the requirement for traders with trading capital exceeding $250 million to register with VARA.
The regulation also sets fees for advisory services, licensing, and annual supervision for custody, exchanges, broker-dealers and lending services. The fees can go from $11,000 to $55,000, depending on the services.
(With inputs from Shikha Singh)
You need to login in order to Like
