August 18, 2023

Dubai’s VARA Enhances Customer Protection While Dealing with Crypto

Dubai

Dubai

In Dubai, the Virtual Asset Regulatory Authority (VARA) has declared its plans to strengthen customer protection in cryptocurrency transactions by enhancing compliance procedures and broadening its regulatory scope.

This initiative seeks to minimize risks linked with digital asset dealings and establish a more transparent and secure digital asset environment.

Additionally, VARA aims to collaborate closely with industry stakeholders by offering them guidelines and best practices to ensure safer cryptocurrency engagement.

VARA and the Dubai Department of Economy & Tourism are working together to establish reliable procedures that ensure top-notch consumer protection and security standards for virtual asset transactions.

The ultimate goal is to design and enforce regulatory frameworks that create a secure space for virtual asset users and investors. These regulations are expected to boost confidence in digital transactions and support Dubai’s digital economy’s long-term growth and sustainability.

New regulations will now affect transactions in both mainland and free zones, ensuring greater transparency for businesses dealing with virtual assets. VARA is willing to further strengthen regulations if needed. These measures aim to boost investor and consumer trust in the virtual asset market.

According to regulations, all entities eligible for a Full Market Product License must switch to a VARA-regulated system by August 31st. This regulation change is important to ensure compliance and fairness in the market for all participating entities.

Businesses must take necessary measures to adjust to the new VARA-regulated system, which includes comprehending the updated guidelines and making appropriate changes to their operations.

To support VARA’s endeavors, the Dubai Department of Economy & Tourism will extend its coverage to include assistance in performing inspections, imposing penalties, managing application renewals, and enforcing suspensions or revocations in cases of non-adherence.

This collaboration also aims to ensure strict compliance with regulations and maintain a high standard of professionalism within the industry.

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