UAE has announced the introduction of a new federal-level regulation governing virtual assets. This framework is the state’s first-ever regulatory regime set up for the web3 space in UAE.
According to the UAE Cabinet, the regulation adds another layer of surveillance when it comes to virtual assets and virtual asset service providers. Additionally, the regulation will serve as UAE’s primary supervisory regime for virtual assets and is anticipated to go live on January 15.
The goal behind the introduction of the regulation is to ensure protection for investors, as well as, monitor the crypto industry in the country. The UAE Cabinet while acknowledging the expected risks to traders and investors in the sector, shared,
Moreover, before the announcement of the regulations, UAE has taken measures to scrutinize the industry, including multiple supervisory initiatives for virtual assets in particular parts of the nation. Abu Dhabi Global Market (ADGM), the Dubai International Financial Centre (DIFC), and The Emirate of Dubai’s recent virtual asset regime Dubai’s Virtual Asset Regulatory Authority (VARA) are a few of those initiatives.
Financial experts agree that the UAE Cabinet’s introduction of federal-level rules is a well-expected legislative development due to the risk profile of the UAE’s virtual asset sector. Under ‘local licensing authorities,’ the Cabinet explores a new approach to interaction with the developing VARA regime and its Abu Dhabi counterpart, after absolving regulations of financial free zones like ADGM and DIFC from the federal financial services rules.
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Source: Cryptocurrency - investing.com
