He issued the first law to regulate virtual assets... and established the first authority in Dubai to regulate and license them

Mohammed bin Rashid: Dubai will be a major player in designing the future of virtual assets in the world

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His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, in his capacity as ruler of the Emirate of Dubai, issued the first law of its kind to regulate virtual assets, aimed at raising the position of Dubai and the UAE as a regional and global destination in the field of virtual assets, and providing the necessary systems to protect investors and dealers. in this sector, and to contribute to attracting investments and companies working in this field, to make the emirate a center for its business.

His Highness Sheikh Mohammed bin Rashid Al Maktoum stressed, on this occasion, that "Dubai will be a major player in designing the future of virtual assets in the world."

His Highness said: "The future belongs to whoever designs it... Today we are participating in designing the future of virtual assets globally."

His Highness pointed out that Dubai possesses all the capabilities that qualify it to be one of the most important global centers in the field of virtual assets, especially the advanced legislative environment.

His Highness continued, "Dubai will provide the best global environment for digital assets... in terms of regulation... and governance... and security... and in line with financial systems locally and globally."

His Highness Sheikh Mohammed bin Rashid Al Maktoum added, "The UAE is keen to consolidate and develop the foundations of future sectors."

His Highness said: "The UAE's step in regulating the virtual assets sector is a leap towards the future, led by the keenness to develop this sector and protect all investors and dealers in it."

His Highness said, in a tweet on Twitter yesterday: "Today we approved in Dubai the first law of its kind to regulate virtual assets. We established an independent authority to oversee the development of the best business environment in the world for virtual assets, in terms of regulation, licensing and governance, and in line with financial regulations. local and global.

His Highness added: “The future belongs to whoever designs it.. Today, through the Virtual Assets Law, we seek to participate in the design of this new and rapidly growing global sector.. Our step is a leap towards the future, aimed at developing this sector and protecting all investors in it. And better, God willing.”

virtual assets

The establishment of the Dubai Virtual Assets Regulatory Authority comes as part of the strategy of the Supreme Committee for the Development of Capital Markets and Exchanges in Dubai. It would consolidate Dubai and the UAE’s position in the virtual asset sector, and attract promising talent in this growing industry from all over the world,” noting that “the authority will provide an integrated set of services related to virtual asset management, in cooperation and coordination with a large group of partners, including the Central Bank and the Authority Securities and Commodities.

Under the law, the provisions of which apply throughout the emirate, including special development zones and free zones, with the exception of the Dubai International Financial Centre, a public institution called the Dubai Virtual Asset Regulatory Authority shall be established, enjoying legal personality, financial and administrative independence, and the necessary legal capacity to The actions and actions that ensure the achievement of its objectives, and are attached to the authority of the Dubai World Trade Center.

The authority seeks to achieve a wide range of objectives, foremost among which is raising Dubai’s position as a regional and global destination in the field of virtual assets and related services, enhancing the emirate’s competitiveness at the local and international levels, developing the digital economy in it, and developing investment awareness in the virtual assets and services sector. and encourage innovations in this sector.

The authority aims to contribute to attracting investments and companies working in the field of virtual assets, to make the emirate a center for its business, and to provide the necessary systems to protect investors and dealers in virtual assets, and work to reduce illegal practices, in coordination with the relevant authorities, in addition to providing the necessary systems, rules and standards. To regulate, supervise and control virtual asset platforms, virtual asset service providers, and everything related to virtual assets.

Power Functions

The law, which comes into force from the date of its publication in the Official Gazette, defines the tasks and functions of the Dubai Virtual Assets Regulatory Authority, which is the competent authority in the emirate to regulate, supervise and control virtual asset services. Virtual asset services in the Emirate, the transactions and trades that take place on it, and its presentation through the Director General to the Board of Directors for approval.

The Authority is also responsible for regulating the issuance and offering of virtual assets, virtual tokens, the disclosures made on them, and the supervision and control over them, and the regulation and authorization of virtual asset service providers, in accordance with the requirements, procedures and controls approved by it in this regard, and the oversight and supervision of them, to ensure their compliance with this provision. The law and the decisions issued under it, and the legislation in force in the Emirate.

The law also stipulates that the authority is the authority competent to organize and set the rules and controls that govern the practice of activity in the emirate, including activities related to virtual asset management services, clearing and settlement procedures between these assets, and virtual asset custody services, in addition to classifying and specifying types of virtual assets. and default tokens, and their trading standards and rules.

According to the text of the law, the authority is the competent authority to regulate and control the operation and management of virtual asset platforms, distributed ledger technology and virtual asset wallets, monitor the trades and transactions that take place through them, prevent manipulation that takes place in virtual asset trading prices, and establish the necessary controls that ensure the protection of beneficiaries and limit the Suspicious practices.

Beneficiary education

The authority is responsible for issuing the necessary instructions and instructions, in coordination with the relevant authorities, to set up a mechanism for evaluating and monitoring virtual asset service providers, raising awareness and educating beneficiaries about dealing and trading in virtual assets, and the risks arising from them, and participating in exhibitions, seminars, and local, regional and international economic conferences in the relevant and international fields. The relationship with virtual assets, cooperation and coordination with local, federal and international authorities and the private sector on the areas related to regulating virtual assets, the collection of fees related to conducting the activity, and coordination with the Central Bank of the United Arab Emirates, in everything related to ensuring the protection and stability of the financial system in the country.

The authority is concerned with proposing legislation related to regulating virtual asset services, establishing companies and institutions for the purposes of achieving the Authority’s objectives, implementing the powers entrusted to it, examining communications and complaints related to virtual asset services, and taking appropriate decisions in this regard, in addition to any other tasks or powers that are related to the organization. The oversight and supervision of virtual assets and virtual asset service providers, or as necessary to achieve the objectives of the Authority, is assigned to it by the Board of Directors.

authority statement

According to the law, it is prohibited for any person in the emirate to engage in activities that are subject to the authority’s permission and control in accordance with the provisions of this law, unless he is authorized to do so by the authority.

The person wishing to carry out the activity must take his headquarters in the Emirate to conduct his business, provided that he takes one of the legal forms approved by the competent commercial licensing authority in the Emirate.

In the event that a person desires to practice the activity in the emirate or any of its free zones, he must obtain the necessary prior approvals and permits from the authority, before commencing the licensing procedures from the competent commercial licensing authority.

Activities subject to authorization

The law defines the activities subject to the authority’s authorization and control in accordance with the provisions of this law as follows:

• Services for operating and managing virtual asset platforms.

• Exchange services between virtual assets and currencies, whether national or foreign.

• Services to exchange between one or more forms of virtual assets.

• Virtual asset transfer services.

• Services for keeping, managing or controlling virtual assets.

• Services related to the virtual asset portfolio.

• Services related to the offering and trading of virtual tokens.

Disclaimer

The law clarified the mechanism for waiver of the permit, indicating that the permit may not be waived, except after obtaining the prior approval of the authority, and set the conditions for stopping the activity or dealing with virtual assets, where the authority may stop issuing permits, and restrict, suspend or re-work, Or suspend the implementation of any internal controls or policies issued by virtual asset service providers, and stop the activity of any virtual asset service provider, in the event of exceptional circumstances, or what threatens the proper and regular workflow.

In return for issuing permits, approvals and other services it provides in accordance with the provisions of this Law and the decisions issued pursuant thereto, the Authority shall collect fees, commissions, and fees for services specified by a decision of the Board of Directors.

Judicial seizure procedures

According to the law, the employees of the Authority, who are named by a decision of the Director General, shall have the capacity of a judicial police force in proving the acts committed in violation of the provisions of this law, and the decisions issued pursuant thereto, and for this they shall have the right to inspect the virtual asset service providers and the authorized persons authorized Any of the activities or services related to virtual assets, reviewing the records and documents they have, writing the necessary minutes of control in this regard, and seeking help from the police when necessary.

Executive branch of power

The law stipulates that the executive body of the authority shall consist of the chief executive, and a number of administrative, financial and technical employees, specifying the mechanism for appointing the chief executive and defining his terms of reference, who, under the supervision of the director general, undertakes the task of managing the authority and supervising its work and activities to ensure the achievement of its objectives.

The duties of the Executive Director include preparing the general policy of the Authority and its strategic, operational and development plans, work programs and projects, and submitting them to the Director General for approval, in preparation for approval by the Board of Directors, and following up on their implementation after approval, in addition to preparing decisions, regulations, and regulations related to the regulation of virtual assets, within the limits of the powers entrusted to the Authority. In accordance with the provisions of this law, the general policy and strategic plans related to the regulation of virtual assets in the Emirate, and the transactions and dealings that take place on it.

Deputy Head of State:

• "Dubai possesses all the capabilities that qualify it to be one of the most important global centers in the field of virtual assets."

• "Dubai will provide the best environment for digital assets in terms of regulation, governance, security, and consistency with financial systems locally and globally."

• “The future belongs to whoever designs it, and today we are participating in designing the future of virtual assets globally.”

The most prominent tasks of the Dubai Virtual Asset Regulatory Authority

■ Regulating the issuance and offering of virtual assets, virtual tokens, and disclosures.

■ Regulation and authorization of virtual asset service providers.

■ Regulating the procedures for protecting the personal data of the beneficiaries.

■ The authority is responsible for proposing legislation related to regulating virtual asset services.

■ Examine reports and complaints related to virtual asset services, and take appropriate decisions regarding them.

■ Promote Dubai's position as a regional and global destination in the field of virtual assets and related services.

■ Enhancing the emirate's competitiveness at the local and international levels, and developing its digital economy.

■ Develop investment awareness in the virtual asset services and products sector, and encourage innovations in this sector.

■ Contribute to attracting investments and companies operating in the field of virtual assets, to make the emirate a center for their business.

■ Provide the necessary systems to protect investors and dealers in virtual assets.

■ Work to reduce illegal practices in coordination with the concerned authorities.

• Establishing the "Dubai Virtual Asset Regulatory Authority" to undertake regulation, supervision and control, and to be attached to the authority of the Dubai World Trade Center.

• The new authority comes within the strategy of the Higher Committee for the Development of Capital Markets and Exchanges in Dubai.

• The law applies across all emirates, including special development zones, and free zones, with the exception of the Dubai International Financial Centre.

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