• The Virtual Assets Regulatory Authority (VARA) in Dubai has imposed a new regulation that prohibits all activities involving privacy coins such as Monero (XMR) and Zcash (ZEC).
• This regulation also sets authorization requirements for crypto firms to ensure anti-money laundering obligations, marketing protocols, prevention of insider trading, and observing whether the asset class is used in criminal activities.
• The updated regime aims to provide maximum security for local consumers and establish Dubai as a global center of blockchain technology.
Dubai Forbids Operations With Monero, Zcash, and Other Privacy Coins
New Regulations Imposed by Dubai’s VARA
The Virtual Assets Regulatory Authority (VARA) in Dubai has imposed a new regulation that prohibits all activities involving privacy coins such as Monero (XMR) and Zcash (ZEC). This regulation also sets authorization requirements for crypto firms to ensure anti-money laundering obligations, marketing protocols, prevention of insider trading, and observing whether the asset class is used in criminal activities.
Maximum Security for Local Consumers
The updated regime aims to provide maximum security for local consumers and establish Dubai as a global center of blockchain technology. Angela Ang – Senior Policy Advisor at blockchain intelligence firm TRM Labs – commented: “Any obfuscation of fund flows poses a challenge to detecting illicit activities, so it is unsurprising that regulators react strongly to these kinds of asset classes and mechanisms.“
Authorization Requirements
In order to obtain authorization from the regulator, crypto firms need to comply with certain rules such as anti-money laundering obligations, marketing protocols, prevention of insider trading, and observing whether the asset class is used in criminal activities.
Provisional Licenses Granted To Binance & Coinbase
The regulator previously gave provisional licenses to Binance and Coinbase Custody Solutions LLC which enabled them to offer digital assets services within the region. Furthermore they allowed customers access their platforms through any device or platform connected with the internet.
Establishing Dubai As An International Hub Of Blockchain Technology
Overall these regulations aim at establishing Dubai as an international hub for virtual assets while providing maximum security for local consumers utilizing cryptocurrency services within the region.