Dubai Rolls Out Virtual Assets Law, Sets Up Regulatory Authority For Crypto

Dubai introduced a virtual assets law and regulatory authority to establish the emirate's position as a key player in designing the future of virtual assets, the city's ruler announced Wednesday.

Dubai residents and virtual asset-related businesses would be required to register with the Virtual Assets Regulatory Authority (VARA) before engaging in crypto-related activities under the new law.

"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 investors," Sheikh Mohammad bin Rashid al Maktoum wrote on Twitter.

Dubai has been pushing for the development of virtual asset regulation to attract new types of industry as regional economic competition intensifies.

The Dubai VARA would oversee the growth of the virtual asset business environment in terms of regulation, licencing and governance.

After El Salvador, cities globally are increasingly adopting cryptos in some way. Last week, the Swiss city of Lugano said it will make Bitcoin legal tender and allow citizens to pay for public service fees or taxes using the token. In the U.S., Miami and New York are in a race for the 'crypto capital' title.