• Dubai’s Virtual Assets Regulatory Authority (VARA) has implemented new regulations that ban the use of privacy coins such as Monero (XMR) and Zcash (ZEC).
• The updated regime seeks to protect local consumers and establish Dubai as a global center of blockchain technology.
• These authorization requirements include anti-money laundering obligations, marketing protocols, prevention of insider trading, and verifying whether the asset class is used in criminal activities.
Dubai Forbids Operations With Monero, Zcash, and Other Privacy Coins
New Regulations From VARA
The new regulations imposed by Dubai’s VARA disallowed the employment of privacy coins, such as XMR and ZEC. Dubai’s Virtual Assets Regulatory Authority (VARA) prohibited all activities involving privacy coins such as Monero (XMR) and Zash (ZEC).
Authorization Requirements
The regulator has also enforced certain rules on the domestic cryptocurrency sector to turn the city into an “international hub for virtual assets.” These authorization requirements include anti-money laundering obligations, marketing protocols, prevention of insider trading, and verifying whether the asset class is used in criminal activities.
Protection Of Local Consumers
The updated regime aims to provide maximum security for local consumers and establish Dubai as a global center of blockchain technology. The regulator previously gave provisional licenses to Binance and other exchanges operating in the region.
Comments On Obfuscation Of Fund Flows
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.”
Establishing An International Hub For Virtual Assets
The new policy seeks to ensure maximum security for local consumers while establishing Dubai as an international hub for virtual assets. The regulator has also set authorization requirements that crypto firms need to pass before popping up in the region.