Dubai introduces Virtual Assets Regulations, in partnership with DLA Piper
The Dubai-focused one Virtual Assets Regulatory Authority (VARA) has created a new set of regulations specifically for virtual assets, in collaboration with the law firm DLA Piper.
VARA, the independent regulator for virtual assets, has published the regulatory framework in an effort to improve the virtual assets ecosystem, promote innovation in the sector and, ultimately, drive economic growth in Dubai. the’Regulations on Virtual Assets and Related Activities 2023Also look to further ensure responsible market participation and consumer protection.
The new regulations take an activity-based and ‘technology-agnostic’ approach to set basic compliance rules for all operators in the virtual assets sector. The regulations apply to all virtual assets in an attempt to remove the complexity found in other jurisdictions.
DLA Piper supported the creation of the new regulations with a global team of lawyers. Lawyers from Dubai, Hong Kong, London and Washington applied their regulatory expertise and sector knowledge of both virtual assets and financial services regulations.
DLA Piper also used the digital asset creation engine, TOOK, to support the Virtual Assets Regulatory Authority. The engine provides a platform for creating new markets and uses distributed ledger technology to provide market information and offer transparency. TOKO’s unique capabilities greatly supported VARA with technical elements of blockchain as well as asset creation.
“Regulatory standards that offer interoperability across borders”
Deepa Raja CarbonCEO and Deputy Chairman of the Executive Board of VARA, added “VARA has been focused on creating the first custom virtual asset regime that is progressive, responsive and responsible at its core.
“The global team of legal and regulatory experts that DLA Piper was able to dedicate to this effort has made them trusted partners throughout the journey. We look forward to being able to establish regulatory standards that offer interoperability across borders, such as that the global business community is able to accelerate maturity across this game-changing industry.”
Kristi Swartz, fintech partner for DLA piper, led the projects. Swartz discussed the collaboration. She said: “We are delighted to have supported VARA through this unique and ground-breaking project. Our work has included benchmarking approaches to virtual asset regulation in over 20 countries to identify best practices that will help VARA achieve its goals and establish Dubai as a leader in the virtual assets sector.
Paul Allen, partner and global co-chair of intellectual property and technology at DLA Piper, also commented. Allen said: “In what has been a complex and truly international effort by a cross-practice DLA Piper team, we are delighted to have advised VARA on this milestone.
“On the back of everything we’ve seen over the past year, proportional regulation is key to unlocking the truly exciting potential of these new technologies, and VARA is leading the way in what those regulations will look like.”
