April 19, 2023

VARA Sets April 30 as Deadline for VASPs to Present IDQs

Dubai's Virtual Assets Regulatory Authority (VARA)

Dubai’s Virtual Assets Regulatory Authority (VARA)

Dubai’s Virtual Assets Regulatory Authority (VARA), the regulator of the digital assets in the emirate, set April 30 as a deadline for the virtual asset service providers or VASPs to present all their initial disclosure questionnaires (IDQs).

VARA’s recent announcement came in collaboration with Dubai’s Department of Economy and Tourism (DET) and Free Zone Authorities (FZAs) to fully regulate the market, the Government of Dubai said in a press release.

Since January, VARA obliged all VASPS to get the required license to operate in the virtual assets sector in or from Dubai. The digital assets regulator pointed out that VASPs operating in Dubai will be notified by receiving the Application Acknowledgement Notice (AAN), adding those who seek to be regulated or registered under VARA can start the appropriate course of action by August 31.

In this regard, Director General Dubai’s Department of Economy & Tourism Helal Saeed Almarri said the virtual assets sector represents a main pillar of Dubai’s D33 Agenda, which stimulates all aspects of sustainable economic growth.

“We are making progress with Dubai’s D33 Agenda, which outlines our mission to establish the Emirate as the capital of the Future Economy anchored by Metaverse, AI, Web 3.0, and Blockchain. The virtual assets sector that spans all these pillars is integral to the strategy presenting a dynamically evolving ecosystem that fuels all aspects of sustainable economic growth,” Almarri underlined.

He asserted the importance of protecting investors and consumers, saying that it is essential for VASPs to adhere to VARA’s full market regulatory system in a way that positions the emirate as a global role model for VA sector development.

VARA has seven various licenses to which VASPs can apply, including Advisory Services, Custody Services, Broker-Dealer Services, Exchange Services, Lending and Borrowing Services, Transfer and Settlement Services, and Management and Investment Services.

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