Global Regulatory Brief: Digital finance, September edition | Insights | Bloomberg Professional Services

Dubai aims to deliver market assurance standards for virtual assets

Dubai’s Department of Economy and Tourism (DET) and Virtual Assets Regulatory Authority (VARA) have signed a Memorandum of Understanding (MoU) for the provision of unified city-wide services to enable the Virtual Assets sector.

Summary: The MOU outlines a framework for collaboration to deliver effective and synchronized VA market assurance across the Emirate of Dubai. 

• Both institutions have agreed to pool their capabilities to reinforce the city’s reputation as an attractive, innovative, and secure global hub for virtual asset service providers (VASPs), operators, and customers. 
• The MoU’s scope further strengthens VARA’s commitment to achieving full transparency and market conduct adherence across VASPs licensed to operate in Dubai.

The wider context: The MoU comes as Dubai seeks to establish an advanced regulatory, licensing and operational framework for the emerging industry of virtual assets, with a focus on emerging technologies such as metaverse, artificial intelligence, blockchain, and Web 3.0.

Closely related: VARA published a revised Custody Services Rulebook permitting VASPs to provide staking services to their customers from the same legal entity and without obtaining a separate license, given specific additional approval from VARA.