Being the world's first independent virtual asset regulator, VARA functions as a transparent and trusted guiding authority for the burgeoning world of Virtual Assets. VARA intends to take its purpose global by developing a simple framework for regulating the business. VARA assists in minimizing risk and ease cross-border operations and innovation to ensure safe market acceptance and growth by using experience from global experts and organizations and engaging with necessary regional financial regulatory authorities.
Positioning Dubai as a regional and worldwide centre for Virtual Assets and associated services, as well as developing a digital economy in the city to increase its competitiveness both locally and globally.
To inspire investors and raise awareness of Virtual Asset services and products, as well as to inspire innovation in order to generate genuine opportunity.
To promote the emerging world of virtual assets and to encourage investors and enterprises to establish operations in Dubai.
To encourage shared responsibility in crafting efficient and tailored legislation to safeguard investors and to combat illicit practices in collaboration with the relevant institutions.
To create the regulations, norms, and standards necessary for regulating, monitoring, and overseeing Virtual Asset Platforms, Virtual Asset Service Providers, and any other Virtual Asset-related activities.
Advisory Services refers to offering, delivering, or agreeing to provide a personal suggestion to a client, either at the client's request or at the Entity making the advice's initiative, with relation to one or more acts or transactions involving any Virtual Asset.
The term 'Broker-Dealer Services' can apply to any of the following:
The term 'Custody Services' refers to the safeguarding of Virtual Assets for or on behalf of another Entity and acting exclusively on confirmed orders from/on behalf of such Entity. All VASPs must follow the Rules for the storage and custody of their clients' Virtual Assets. Only VASPs that separate their clients' assets in separate VA Wallets will be eligible for a Custody Services License.
The term 'Exchange Services' can refer to any of the following:
The term 'Lending and Borrowing Services' refers to the execution of a contract under which a Virtual Asset is transferred or lent from one or more parties [the Lender(s)] to one or more other parties [the Borrower(s)], with the Borrower(s) committing to return the same, at the request of the Lender(s), at any time either during or at the end of the period agreed upon, either to its interest or on behalf of others interest.
The term 'VA Management and Investment Services' refers to acting as an agent or fiduciary on behalf of an Entity, or otherwise accepting responsibility for the management, administration, or disposal of that Entity's Virtual Assets. Examples include, but are not limited to
Before engaging in virtual asset operations in Dubai, any VASP wanting to provide the aforementioned services must apply for and get a license from VARA. Because no virtual asset activity is 'free' from regulatory oversight, any virtual asset service or activity, including but not limited to that provided by DLT service providers, may need a VARA license. Such DLT service providers must assess if they are engaging in any virtual asset activity that falls within the categories listed above.
VA Proprietary Trading will need a VARA no objection certificate to certify that the activity may be carried out with regulatory control without a VA License. Furthermore, proprietary trading above specific trading volumes must be registered with VARA.
VASPs will need to contact their commercial licensors (Free Zones or DET) to submit their Initial Disclosure Questionnaire in order to receive a Propriety Trading NOC.
Before engaging in such action, issuers of Virtual Assets must receive VARA approval of their whitepaper under the "VA Issuance Rulebook."
Understanding the recently implemented virtual assets regulation in Dubai is not a cakewalk. It needs a lot of understanding and recollection of the laws to prevent any form of regulatory action. We are here to take the pressure off your shoulders.
Finjuris is one of the leading legal organizations in UAE pertaining to fintech, blockchain and cryptocurrency industry. With our presence in various jurisdictions across the globe, we’re well aware of regulations and compliances that one has to keep in mind while running a business. Our team of VARA consultants provide holistic solutions right from legal structuring of your business to licensing.
Residents conducting a business in the virtual assets space without VARA approval are prohibited to continue their operations. We ask you to let us to do what we do best in order to avoid becoming involved in such kinds of situations without specialized knowledge. Since our experts will lead the way, you won't have to second-guess your decision.
Stage 1 -Initial Approval - VASPs must complete an Initial Disclosure Questionnaire [IDQ] with DET or a FZA, which will be examined by commercial licensing agencies before being passed to VARA for evaluation.
Stage 2 - Once such requirements have been met, the VASP can apply for Full License Approval [which may contain terms and limits such as access to retail customers].
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