The Virtual Asset Regulatory Authority (VARA), the regulatory authority charged with overseeing and managing cryptocurrency laws in Dubai, has released long-awaited new guidelines and regulations for Virtual Asset Service Providers (VASPs) that operate in the Emirate. The new market product regulations include four mandatory rulebooks and some more specific rulebooks dependent on the operation, according to Dubai-based lawyer Irina Heaver and Coin Telegraph. These rules are to be followed by those within Dubai excluding the Dubai International Financial Centre (DIFC), which is a free zone operating under its own regulations.
VARA has called attention to the fact that all participants in the market, VARA licensed or not, must adhere to the new rules and guidelines on marketing, advertising, and promoting in Dubai. Those who fail to meet the new requirements will face fines of up to $55,000, or $135,000 for repeat offenders. The regulation has also set the financial requirements for all lending services, exchanges, licensing, and advisory services and has made it clear that the issuance of privacy coins is forbidden in Dubai and all traders with a trading capital of over $250 million will need to register their activities with VARA.
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