A new stage in the development of the cryptocurrency industry has begun in Dubai
Since August 31, 2023, a new era has begun for the Dubai cryptocurrency industry – from that day on, virtual asset operators move into a regulated environment and must receive VARA (Dubai Virtual Assets Regulatory Authority) certificates.
According to experts, this means a transition to a new mode of operation for all companies dealing with crypto assets, and for their clients – guarantees of compensation in case of unforeseen circumstances.
Any traditional business that deals with virtual assets must now have the necessary license for these aims. For example, hotels or car rental companies that accept payment in cryptocurrency from customers must pass the appropriate registration with the regulatory authority.
In particular, virtual asset operators were required to provide information about the ultimate beneficial owner and top management. After receiving initial approval, the company must apply for a Virtual Asset Service Provider (VASP) license.
Currently, seven licensed activities in the field of virtual assets are available: consulting services, broker-dealer services, depository services, exchange services, lending and borrowing services, transfer and payment services, as well as management and investment services.
The UAE State Prosecutor’s Office previously warned the population against unlicensed collection of funds – fines for such violations reach 1 million dirhams. In addition, violators face up to five years in prison.
In accordance with Article No. 41 of Federal Decree No. 34 of 2021 “On combating rumors and cybercrimes”, anyone who promotes cryptocurrency, collects funds from the public for the purpose of investing, managing, and using them, without a license, will be prosecuted by law.
Fines will range from 250 thousand to 1 million dirhams. In addition, the perpetrators will have to return all the funds collected. The reminder became part of an information campaign to improve the legal literacy of the population.
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