In March 2022, Dubai became the first country in the United Emirates to adopt laws regulating virtual assets and went ahead to form an independent body, the Virtual Asset Regulatory Authority (VARA). The role of the regulator is to co-operate with all the stakeholders, ensure there is maximum transparency and security of the investor and also license, regulate and create governance. In the official Twitter account of Sheikh Mohammed bin Rashid Al Maktoum, he commented, “The goal [is to] establish the UAE and Dubai’s position as a key player in designing the future of virtual assets globally.”
In a press release issued by the Dubai government, the role of the virtual Asset Regulatory Authority will also be to license, regulate and create governance around Cryptocurrency, cryptocurrency platforms, and companies offering crypto transfers, custody, and management services.
Virtual assets include NFTs and Cryptocurrency. NFTs are non-fungible tokens that are non-interchangeable units of data stored on a blockchain, a form of digital ledger that can be sold and traded. While Cryptocurrencies include Bitcoin, Ethereum, and Litecoin. The authority will also ensure that it positions Dubai as a regional and global destination for the virtual asset sector and investors.
The new law will apply throughout Dubai except for the free zone area. With the new laws and regulations, there is expected growth in the Crypto sector by encouraging more trading and also setting up companies dealing and trading with Cryptos.
As a result of the new laws, companies such as By bit have announced moving their headquarters from Singapore to Dubai to join other companies such as FTX and Binance which have already received licenses. The Central Bank of Dubai clarified that it doesn’t outlaw the use of virtual currency but it limits it as legal tender. By using a cryptocurrency exchange in the UAE, you can trade Bitcoin and other coins. But you also need to know that you will be required to pay taxes when cashing out your profits.
The new law also aims at focusing on the growth of the development of cryptocurrency and blockchain technology. Cryptocurrency mining is legal in the UAE. Other countries in the UAE have an Islamic digital coin called, the Arab coin.
Barely a week after the new law and introduction of the regulating body, some schools in Dubai have started accepting cryptocurrency as Tuition fees or school fees. One of the schools, Citizens, has announced that it will accept Bitcoin (BTC) and Ethereum (ETH). This introduction offers parents new payment avenues thus providing flexibility on the payments avenue. In a press statement the founder, Dr. Adil states that Citizens is disrupting the education sector by reimagining every element of the learning experience – be it disrupting the education sector by re-imagining every element of the learning experience – be it the way our children learn, how we equip our teachers to be mentors, what our learners choose to wear, or the ways that parents can pay for tuition. The school opens its door in September 2022.
Having new laws regulating Virtual currency has not only attracted new investors but has also opened up new payment options making its citizens re-think and re-model their businesses around virtual currencies and introduce new payment options.
