A virtual Asset is the digital representation of the value that can be transferred, exchanged, or utilized as a means of payment or investment. This may include virtual tokens which are often referred to as virtual assets. This may cover the resources including non-fungible tokens, NFTS, security tokens, cryptocurrencies, etc. Moreover, the virtual asset is generally the cutting-edge technology that shows worth. It can be traded in digital form. Bitcoin, NFTS, and cryptocurrency are virtual assets in the Digital space.
There is a newly formed body by state officials to regulate the virtual world. Regulation of Virtual Asset Law (VAL) and the formation of the Dubai Virtual Asset Regulatory Authority (VARA) are formulated to scrutinize the virtual sector. Furthermore, it is also created to provide a complete legal framework for the businesses and organizations that operate in the Virtual assets sector.
Virtual assets are the value representation in the digital world. They can easily be exchanged, transferred, or utilized as a mode of payment Ethereum, Bitcoin, and other non-fungible tokens are some of the NFT’S. In the year 20220, new regulations are introduced which are called Virtual Asset Laws (VAL). These regulate the virtual assets in Dubai. The new law was introduced earlier in 2022 and became effective in March 2022.
Virtual Asset Law (VAL) was set up by Dubai Virtual Assets Regulatory Authority. It regulates virtual assets specifically (VARA). It is created for the people in Dubai who are interested in trading virtual assets and businesses. This also includes Cryptocurrencies, NFTS, non-fungible tokens, fungible tokens, and the list goes on. The law created applies to all free zones and other specific development zones present in Dubai, UAE. It is also applicable to the supply of services connected to virtual assets. However, the Virtual Asset law does not cover the virtual assets at Dubai International Finance Center (DIFC).
Dubai Financial Services Authority (DFSA) is the authority over DIFC. It is a renowned free zone of the UAE. It has its complete set of regulations concerning virtual assets. As per the DFSA, Dubai International Financial Center (DIFC) is planning to launch its own set of regulations for the management of Cryptocurrencies. Securities and Commodities Authority (SCVA) governs the UAE securities. They have announced that it is designing a legal regulatory framework for cryptocurrencies. Very soon they will also launch their own set of rules for it.
In addition, Dubai Virtual Assets Regulatory Authority (VARA) which is another regulatory body is connected to the Dubai World Trade Center Authority (DWTCA). It is a free-standing government body that created the Virtual Asset law (DWTCA). The Dubai Virtual Assets Regulatory Authority (VARA) is likely to perform the following functions in the years to come. The prime motive is to boost Dubai’s digital economy. Also, they intend to make Dubai the hub for the regional and international digital transaction that involves virtual assets.
They will be responsible to establish the mechanism and set out the guidelines for overseeing everything in a virtual world. Besides they will also set the benchmarks to govern the virtual assets that are set up by VARA.
In addition, they will also coordinate with the relevant commercial licensing authority present in Dubai. This is done to revoke the appropriate entity’s commercial trade license. VARA is the authority responsible for the enforcement of virtual Assets law in Dubai. Further details can be grabbed by visiting law offices like there are several Law Firms in Dubai with top Lawyers in Abu Dhabi or Dubai.
