Decidedly, the issue of crypto regulation has the wind in its sails across the globe! After El Salvador, the European Union (soon), the United States – and many other states – it’s Dubai’s turn to pass its first crypto-asset specific law.
The news was announced today, Wednesday, March 9, 2022, on the official Twitter account of the Emir of Dubai, Mohammed bin Rashid Al Maktoum.
“Today, we approved the Virtual Assets Law and established the Dubai Virtual Assets Regulatory Authority. A step that establishes the UAE’s position in this sector. The Authority will cooperate with all relevant entities to ensure maximum transparency and security for investors”.Mohammed ben Rachid Al Maktoum
Today, we approved the virtual assets law and established the Dubai Virtual Assets Regulatory Authority. A step that establishes the UAE’s position in this sector. The Authority will cooperate with all related entities to ensure maximum transparency and security for investors. pic.twitter.com/LuNtuIW8FM
— HH Sheikh Mohammed (@HHShkMohd) March 9, 2022
This first crypto-currency law aims to make Dubai a “major player” on a global scale in the field.
To achieve this, the law provides for:
- The creation of a cryptocurrency regulatory authority: this authority will have a supervisory role but also grant the necessary licenses to operate legally in the sector. In addition, this regulatory authority will have to supervise and monitor the commercial development of cryptocurrencies globally. This body may be similar to the Cyprus Securities and Exchange Commission (Cysec), the regulatory body located in Cyprus.
While the law in Dubai has been silent on digital assets until now, one wonders what justifies such a stance.
The Emir of Dubai, Mohammed ben Rachid Al Maktoum, explained that this decision was the result of the exponential growth of the sector over the last few months, an argument shared by Joe Biden’s American administration as shown by the decree published today in the United States. We can also note a renewed interest in regulation since Russia has been subject to economic sanctions, which has an effect (overall positive) on cryptos.
In addition, it had been announced last night by the UAE Securities and Commodities Authority that a clear regulatory framework on crypto-currencies should soon be in place.