VARA, the First Virtual Asset Regulation Launch in Dubai
VARA is the world’s first, tailor-made Virtual Asset regime, and as such, its Full Market Product (FMP) Regulations are designed to specifically cater for the provision of permissible activities and services to customers and investors, from the Emirate of Dubai. With bespoke rules and guidelines designed to provide clarity, assure certainty, and mitigate market risks, VARA seeks to develop a model framework for global economic sustainability within an innovation-centric environment that is truly borderless, technology agnostic, and future-focused.
VARA’s Virtual Assets regulatory framework is focused on the risks that each Virtual Asset activity presents to the market, and seeks to provide VASPs with a clear framework of rules which apply to their particular operations and business models, while maintaining a baseline market standard of compliance across core regulatory domains.
VASPs who fulfil VARA’s licensing requirements will be required to comply with four Compulsory Rulebooks [Company, Compliance & Risk Management, Technology & Information, and Market Conduct]. In addition, seven activity-specific Rulebooks have been developed to cater for risks associated with the provision of each Virtual Asset activity [Advisory, Broker-Dealer, Custody, Exchange, Lending & Borrowing, Payments & Remittances, and Management & Investment]. VASPs will only be required to comply with each activity Rulebook if they are licensed by VARA to offer the activity. VARA has also established rules for the Issuance of all Virtual Assets, as well as Virtual Asset Marketing activities.
Here is more details about the News:
VARA Regulations and Compulsory Rulebooks
Virtual Assets and Related Activities Regulations 2023
Compliance & Risk Management Rulebook
Technology & Information Rulebook
Market Conduct Rulebook
VA Issuance Rulebook
Advisory Services Rulebook
Broker-Dealer Services Rulebook
Custody Services Rulebook
Exchange Services Rulebook
Lending & Borrowing Services Rulebook
Payments & Remittances Services Rulebook
Management & Investment Services Rulebook
VARA reserves the right to modify, refine, adjust, and/or expand these Regulations on a regular basis at its sole and absolute discretion, to remain resilient and progressive in its ability to address emerging and continually evolving developments across the global VA industry.
All market participants, whether licensed by VARA or not, must adhere to the Marketing, Advertising and Promotions regulations. VASPs, businesses offering non-Virtual Asset activities and individuals should be aware of the penalties for non-compliance. You can download these documents at the links below.
Download Regulatory on Marketing Advertising and Promotions related to Virtual Assets
Download Penalties for Non-Compliance
Note that businesses are not permitted to offer regulated virtual assets services or activities in Dubai without receiving VARA approval or no objection.
Virtual Assets Regulatory Authority (VARA)
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