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ArticlesDubai VARA Virtual Asset Regulatory Trends
Dubai is emerging as the next global hub for virtual assets. The world’s largest virtual asset exchange, Binance, has signed an agreement with the UAE’s Securities and Commodities Authority (SCA) to establish a global hub for virtual assets. In early 2022, the UAE enacted the Dubai Virtual Assets Law (Law No. 4 of 2022 Regulating Virtual Assets in the Emirates of Dubai: "DVAL"), creating a legal foundation for virtual asset businesses. This law provides predictability to businesses and investors, fostering industry growth. Based on DVAL, the Dubai Virtual Assets Regulatory Authority (VARA) was established. VARA issues licenses for virtual asset service providers (VASPs) and oversees their operations. Activities covered by VASPs include the trading, exchange, transfer, storage, and management of virtual assets. However, despite the enactment of DVAL, certain activities overlap with regulations under existing federal laws. Businesses engaged in financial services related to virtual assets, such as payment services, must comply with federal laws and acquire additional permits. Prospective operators should take this into account. VARA Licensing Process To obtain a VARA license, virtual asset businesses must go through the following four stages: Provisional Permit Preparatory Permit MVP (Minimum Viable Product) Operating Permit FMP (Full Market Product) Permit As of February 28, 2023, no FMP permits have been issued. VARA has only granted Provisional and Preparatory Permits thus far. Exchanges such as Binance, Bybit, Crypto.com, Equiti, FTX, Huobi, and OKX have proactively applied and are under review. Binance and FTX received MVP Operating Permits. However, due to recent developments, FTX’s process has been suspended. VARA’s VASP licenses involve rigorous requirements, making them challenging to obtain quickly. Key Considerations To legally operate a virtual asset business, such as an exchange in Dubai, obtaining a VARA license is mandatory. Dubai’s ambition to become a hub for the virtual asset industry extends beyond infrastructure, with proactive national policies and regulatory frameworks in place. Since national policies on virtual assets differ widely, and licensing and regulatory details vary significantly, confusion can arise. Nevertheless, businesses aiming for global markets must stay informed about regulatory trends in each country and take proactive steps to comply.
2023-02-28 -
Articles
Response Plan: How Domestic FTX Users Should Respond to the FTX Collapse
Maintain Your Account: Do not delete your FTX account until the Chapter 11 bankruptcy or liquidation process is fully completed. Keep it active. Secure Evidence: Prepare for potential hacking or account deletion by capturing and securely storing token holdings, account information, and transaction records to prove your creditor status with FTX. Verify Creditor List: Once FTX's Chapter 11 or liquidation process is approved, the appointed administrator will organize a creditor list. Most users will likely be automatically included, but in case of exclusion, notifications may be sent via email or other communication channels. Beware of Phishing: Verify the authenticity of any emails or messages claiming to be from FTX. Be cautious of phishing scams and avoid falling victim to fraudsters. Engage with Communities: Join domestic victim communities to stay updated with the latest information and collaborate with other affected users for collective actions and insights. Plan for Time: Understand that the recovery process may take 1–2 years. Manage expectations and avoid unnecessary stress during the waiting period. Avoid Secondary Scams: Beware of offers to buy your FTX claims at a discount or to assist with debt collection. Such proposals may lead to secondary fraud. Key Takeaway: Domestic FTX users should keep their accounts active, prepare evidence to establish creditor status, and avoid phishing and secondary scams. Stay informed by monitoring updates on the Chapter 11 or liquidation process and participating in victim communities to navigate the situation effectively.
2022-12-22 블록미디어(BLOCKMEDIA)