Dubai passes a new law on crypto and sets a regulatory authority to oversee it.

Under the new law, a regulatory entity will be established to regulate the cryptocurrency business.

Dubai has recently become the latest country to enact cryptocurrency legislation, joining Singapore, the United States, the United Kingdom, El Salvador, and others.

Sheikh Mohammed Bin Rashid, the ruler of Dubai, announced on Wednesday that the emirate has passed its first law governing virtual assets and established an independent regulator to oversee the cryptocurrency industry.

“Adopting the virtual assets law and establishing the Dubai Virtual Assets Regulatory Authority is a critical step in strengthening the UAE’s leadership in this sector,” he said.

The United Arab Emirates is a federation of seven emirates, with Dubai, the region’s financial powerhouse, pushing for the establishment of virtual asset regulation in order to attract new forms of industry as regional economic competition heats up.

According to a statement carried by state media, the Dubai Virtual Asset Regulation Law aims to develop Dubai and the UAE as regional and global destinations for the virtual asset market.

The Dubai Virtual Assets Regulatory Authority (VARA), a regulatory body, will oversee the development of the virtual asset business environment in terms of regulation, licencing, and governance.

The residents of Dubai would be required to register with VARA before engaging in crypto-related activities under the new law. Virtual asset-related businesses would also need to register. These businesses include cryptocurrency exchanges, businesses facilitating cryptocurrency transfers, etc.

The new law will apply throughout Dubai, with the exception of the government-owned DIFC financial free zone. The Dubai Financial Services Authority (DFSA), the DIFC’s regulator, is developing its own regulations for the virtual asset market.

Meanwhile, the notification did not clarify which crypto assets would be included by the new rule.