Michaela
Dubaiās Virtual Assets Regulatory Authority (VARA) has announced plans to introduce new regulations that will require crypto businesses to disclose the identities of major token holders, commonly referred to as crypto whales. In an interview with The Standard, Matthew White, CEO of VARA, revealed plans for new Dubai crypto rules that aim to enhance consumer protection as Dubai positions itself as a leading global hub for the growing cryptocurrency sector.
The new regulations will require virtual asset service providers to submit detailed reports on ownership structures, aiming to improve market transparency and mitigate the risk of manipulation.
According to White, if a tokenās majority ownership is held by its creator or an institution, their identities should be disclosed. He explained that this measure would provide investors with greater transparency, as most tokens are typically owned by third parties, such as venture capital firms, rather than their original creators.
Enforcing the disclosure requirements under the new Dubai crypto rules poses challenges due to the pseudonymous nature of cryptocurrency transactions. While the regulation aims to provide investors with more transparency regarding token ownership, market risk, and potential price manipulation, White acknowledged the difficulties in ensuring compliance with these measures.Ā
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The VARA CEO believes that disclosing the identities of crypto whales could be feasible, as virtual assets are recorded and stored on the blockchain ā an immutable and decentralized ledger that maintains a transparent history of all transactions across a peer-to-peer network.
The regulatory body is also considering new requirements for virtual asset issuers and service providŠµrs to disclose the composition and auditing of their reserves. Additionally, they would be required to establish transparent redemption mechanisms, providing investors with a āclear description of risks.ā
VARA is set to implement these new regulations in the first quarter of the year, with several already in progress. White attributes Dubaiās success in the virtual asset sector to its top-down policy approach, business-friendly environment, and reputation as a āsafe and family-oriented city.ā
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A 2024 report recognized Dubai as one of the leading destinations for cryptocurrency businesses in 2024, citing its crypto-friendly regulatory framework as a key factor in attracting industry players.
The report emphasized that Dubai, along with other leading jurisdictions, offers clear legal frameworks and favorable tax policies, positioning them as key hubs for the expanding blockchain and cryptocurrency industries.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
