Dubai also has its own regulation of virtual assets, which applies in the Mainland and Free Zone (excluding DIFC).Law:
Dubai Law No. 4 of 2022 Regulation of Virtual Assets.Regulatory Authority:
Dubai Virtual Assets Regulatory Authority (VARA).Applicability:
Mainland and Free Zone (excluding DIFC).
What does it regulates: issuance of virtual assets and NFTs, licensing of asset providers and crypto platforms. Without a license from the regulator, the law prohibits, among other things: the provision of crypto platform management services, the exchange of cryptocurrencies for other cryptocurrencies or for domestic or foreign currencies, storage, control of cryptocurrencies, etc.
The Dubai International Financial Centre (DIFC) financial freezone is regulated by another government body, the Dubai Financial Services Authority (DFSA), and issued Consultation Paper No. 143 in March 2022.
The paper contains comprehensive regulation of crypto assets within the DIFC. This became effective from 1 November 2022
. A licence will be required to operate a crypto business within the DIFC.