New Cryptocurrency Directive from Dubai: Investors First!

cryptocurrencies continues to spread. As the number of investors increases, there is movement in the sector, but cases of fraud are also widespread.

Since the crypto industry is naturally independent of states, states want to regulate this area. The regulation of cryptocurrencies still continues to be discussed in many countries. In this context, the latest regulation development came from Dubai.

According to the news of Khaleej Times, Dubai’s regulatory authority (VARA) established for virtual assets has issued a new directive.

Organizations wishing to obtain a license in Dubai became the main interlocutor of the directive published by VARA. Various issues were addressed in the directive.

VARA explained in the directive that the biggest criterion that Dubai observes for licenses is “investor safety”.

Keeping investors’ savings safe is the top priority for the authority. VARA asks organizations wishing to apply for a crypto license in the country to guarantee this security. It was also announced that the principles in the published directive will be observed in all kinds of communication channels (for example, advertising) in the country.

Kokila Alagh, founder of KARM Legal Consultants, commented on the development:

“VARA has laid out very clear principles for virtual asset companies to operate legally in the country. It is now the most important issue for the institutions applying for the license to prove that the assets of the investor are safe.”

In the past months, it is known that many institutions, especially crypto money exchanges, are trying to get a license to serve in Dubai. Cryptocurrency exchange that got the first license in Dubai Binance had happened.