Dubai Virtual Assets Regulatory Authority (VARA) Rolls Out Regulations for Virtual Assets and Related Activities

Dubai, known for its innovative approach to technology, has recently released the Virtual Assets and Related Activities Regulations 2023 (VARA 2023), which provides a comprehensive framework for the virtual assets industry. The regulations, released by the Virtual Assets Regulatory Authority (VARA), aim to promote responsible innovation while protecting investors and consumers.

Virtual Asset: An Overview

The regulations define virtual assets as digital representations of value that can be traded, transferred, and stored electronically. This includes crypto currencies, digital tokens, and other virtual assets used for financial transactions. The regulations also cover related activities, including virtual asset exchanges, wallet providers, and other service providers in the industry.

Regulatory Framework

To ensure compliance, the VARA Regulations have divided the rulebooks into two categories:

1. Mandatory
2. Activity specific

The mandatory rulebooks, including the Company Rulebook, Compliance and Risk Management Rulebook, Technology and Information Rulebook, and Market Conduct Rulebook, must be followed by all Virtual Asset Service Providers (VASPs).

The activity-specific rulebooks, covering

1. Advisory Services,
2. Broker-Dealer Services,
3. Custody Services,
4. Exchange Services,
5. Lending and Borrowing Services,
6. Payments and Remittances Services, and
7. Management and Investment Services Rulebook

Key Features of the Regulations

• Licensing Requirements: Virtual asset service providers must apply for a license from VARA and demonstrate their compliance with the regulations before they can operate in Dubai.
• Cybersecurity Measures: VARA has introduced robust cybersecurity measures to protect investors and consumers. Service providers must implement strict security measures and have contingency plans in place in case of a cybersecurity breach.
• Consumer Protection: VARA has set clear guidelines for virtual asset service providers, including providing clear information to consumers, resolving disputes in a timely manner, and protecting the privacy of their users.
• Anti-Money Laundering and Combating Financing of Terrorism: The regulations include provisions for anti-money laundering and combating the financing of terrorism.
• Marketing Regulations: The regulations cover marketing regulations, protection against and investigation of market offenses, and the protection of confidential financial information.

Road Ahead for the Virtual Asset Industry

The virtual asset market in Dubai is anticipated to be greatly impacted by the issuance of the VA Regulations. The regulations will encourage responsible innovation and increase investor and consumer confidence. The regulations are also likely to attract international virtual asset businesses to Dubai, further strengthening its position as a leader in the industry. In order to stay up with how quickly the sector is changing, VARA will also continually reviewing and revising the laws.

Conclusion

Dubai’s Virtual Assets and Related Activities Regulations 2023 is a significant step forward for the virtual asset industry. The regulations provide a comprehensive framework for the industry, promote responsible innovation, and increase investor and consumer confidence. The future of the virtual asset industry in Dubai is bright, and the VARA 2023 regulations will play a key role in shaping its future.

Get Free Consultation

Would you like to rate us on Google?      Yes    No

HLB HAMT - Audit, Tax, Accounting and Business Advisory

4.8

Based on 176 reviews

review us on

Varun R Chandra

07:38 25 Apr 21

HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.

Giuseppe Assi

06:20 31 Jan 21

I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE... FOR PRICE.I RECOMMEND THIS COMPANY.read more

Mohamed Sheriff

16:16 28 Jun 20

Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits.... And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.read more

218141 JOSEPH THOMAS

16:20 23 Jun 20

Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our... requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.read more

PMI

07:14 23 Jun 20

In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional... and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.Wishing HLB Hamt team all the very best.read more

RAVI CHOKSI

08:28 21 Jun 20

Thank you Team HLB hamt...Your internal auditing team put the good amount of time and inputs in helping the... organisation making considerable improvements throughout the organisational working structure and helps in building the better business.Thanks.read more

Maharajan Subramaniam

18:17 06 Jun 20

High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and... checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.read more

Mohammed L

08:07 05 Jun 20

We have been working closely with them on payroll services for quite sometime.They provide very professional... services,experts in domain and excellent support. Would recommend them.Cheers.read more

ROY ROSHAN VIVIAN

06:32 04 Jun 20

Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We... are very Extremely satisfied working with him and his team. Wishing them success.read more

Basil Daniells

05:55 03 Jun 20

I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership... and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.read more

Amar Kashyap

19:28 02 Jun 20

Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand... their client and their business. They are highly recommended and trust worthy.read more

Radz de Jesus

16:03 02 Jun 20

We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a... lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.read more

Next Reviews