Dubai has officially legalized cryptocurrency

The Dubai Virtual Assets and Regulatory Authority (VARA) has released the long-awaited full-fledged market rules for Virtual asset Service Providers (VASP).

These rules establish a structure of digital assets based on the principles of economic sustainability and cross-border financial security to eliminate the risks of money laundering and terrorist financing.

With the help of these rules, the regulator will develop a model framework for global economic sustainability in an environment focused on innovation and technology independence. Now, no organization can provide digital asset services in Dubai unless it has a VARA license.

The penalty for non-compliance with the rules will be from $5400 to $54451. Repeat offenders will receive a fine of $136,129 for each offense. In addition, the issue of cryptomonets will be prohibited by law.

Analysts note that thanks to this regulatory framework, Dubai can become a regional center of financial technologies. To date, no crypto business has VARA licenses.

Meanwhile, the European Union, the United Kingdom, South Korea and other countries are already developing their own licensing regimes for cryptocurrencies.