In March this year, the UAE’s authorities created an autonomous agency called the Virtual Asset Regulatory Authority (VARA).

Dubai’s Virtual Asset Regulatory Authority (VARA) reportedly instructed local cryptocurrency-related firms to require a license before engaging in promotional activities in the areas of licensing and consumer protection. 

This initiative may protect investors and consumers from misleading cryptocurrency marketing campaigns.

Dubai and Crypto

Over the past several months, Dubai has emerged as a global cryptocurrency center where numerous companies and leading players set foot. Sam Bankman-Fried’s FTX Trading established a regional headquarter in the city, while CryptoCom and OKX were licensed for services in the Middle East city.

While Dubai gives many examples of its pro-crypto attitude, in recent years, the city’s authorities allowed Binance and CryptoCom governments to operate their businesses within their limits while granting permission for FTX to establish a local headquarters in the capital.

In May, Emirates Airlines, headquartered in the UAE, announced its intentions to enable individuals to pay for flights using bitcoin. 

CEO Adel Ahmed Al-Redha stated that the company called on the plane company to track aircraft and engine information using blockchain technology as well.

VARA’s Safety Concerns

In March this year, the UAE’s authorities created an autonomous agency called the Virtual Asset Regulatory Authority (VARA).

The United Arab Emirates, and more specifically Dubai, have been making gradual steps toward the digital asset industry recently. 

“Our step is a leap towards the future aimed at developing this sector and protecting all investors in it,” Prime Minister Sheikh Mohammed bin Rashid Al Maktoum said at the time.

According to Gulf News, the entity doubled its cryptocurrency-related duties by introducing regulatory rules on organizations that advertise crypto services and products, including search engines, media sites, and online or offline publication platforms that urge people to engage in crypto.

Such businesses now need to get a license from the VARA to ensure their business operations are not detrimental to investors.

“These regulations specifically address marketing and communications activities ahead of operationalizing the MVP licensees so that any mass-market information dissemination and consumer solicitation are designed to safeguard community interests,” the statement reads.

Advance Adoption

Subsequently, the city hosted somewhat bizarre events in the crypto world. Three months ago, the French Florian Ughetto and the Paraguayan Liz Nunez got married in the Metaverse (the first such event for Dubai). 

The couple explained they wanted to gather all their friends and family for the wedding and virtual reality was the only spot where this could have happened.

Amidst news of central Africa republic, Thailand, United States, Paraguay, Venezuela, Anguilla, and the long list of Crypto Legal Tenders, UAE is standing out in notable ways as it makes waves and ensures security for its community investors. 

On the other hand, some countries are clamping down on the use of cryptocurrencies in their territory, such as Afghanistan, Nigeria, Algeria, Egypt, and many more. The big question is, Will UAE turn around in the future or this is the journey to the future?

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