Dubai approves the first-of-its-kind law to regulate NFTs and crypto

In order to establish a strong digital economy, Dubai adopted the crypto asset regulation on 9 March 2022, joining the likes of the US, the UK, El Salvador and Singapore, which have introduced cryptocurrency laws as well. That being said, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, Ruler of Dubai, tweeted the following statement:

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 its investors.

Dubai is rightfully considered the financial powerhouse of the region and the Dubai Virtual Asset Regulation Law aims to establish the emirate and the entire UAE as a worldwide location for the virtual asset industry. In a statement made to Arabian Business, Loredana Matei, the Founder of Jensen Matthews PR and Finsight News, commented on this major step:

The significance of the new UAE digital assets law reflects the growth of this sector in the UAE and even in this region. Even more so, the law comes on the same day as the new US Executive Order that sets the framework for cryptocurrencies. This signals that both the UAE and the US are becoming the leaders in the global adoption and regulation of digital assets.

It is worth mentioning that the regulatory authority called The Dubai Virtual Assets Regulatory Authority (VARA) is set to control the growth of the virtual asset market regarding governance, regulation and licensing. This authority will be connected to the Dubai World Trade Center Authority and comes as part of the strategy of the Dubai Securities and Exchange Higher Committee. Following the newly introduced law, Dubai residents will be obliged to register with VARA before commencing any crypto-related activities. Additionally, businesses related to this industry will be required to register and include cryptocurrency exchanges, companies managing cryptocurrency transfers and others. In this case, virtual assets include cryptocurrencies such as Bitcoin and non-fungible tokens (NFTs). The Dubai Virtual Asset Regulation Law will come into effect throughout the emirate, including special development zones and free zones, with exception to the DIFC financial free zone.

On top of creating a safer environment for potential investors, the new law will also have a positive effect on Dubai’s real estate sector and facilitate transactions for those opting to acquire property with cryptocurrency. There is already a range of master developers offering this option, such as Emaar Properties, DAMAC Properties, Select Group, Meraas, Dubai Properties and MAG Lifestyle Development. Select Group in particular, recently witnessed the launches of 2 sensational projects: Peninsula Three, which is the fourth phase of its highly successful Peninsula development in Business Bay, and Six Senses Residences The Palm on Palm Jumeirah, the first Six Senses-branded project in the country.