This week, Dubai’s Virtual Assets Regulatory Authority (VARA) – the governing body that oversees cryptocurrency laws in UAE’s most populous city – unveiled new regulations to fortify its virtual asset sector while simultaneously combating illegal financial activities concerning anonymous cryptocurrencies within the digital space.
Privacy-Priority Cryptocurrencies Like Monero May Be Banned
The UAE has recently issued groundbreaking regulations for anonymous cryptocurrencies such as Monero (XMR). These laws not only require licensing and authorization from virtual asset companies and issuers operating in Dubai but also strictly prohibits their circulation. The comprehensive set of crypto-regulations is expected to dramatically alter the cryptocurrency landscape within the jurisdiction.
The freshly ratified regulations describe anonymous cryptocurrencies as “a type of Virtual Asset which curbs the monitoring and documentation of transactions or record of possession through distributed public ledgers and for which the [Virtual Asset Service Provider] has no techniques to permit trackability or detection of ownership.”
Dubai‘s Crypto activities are under strict supervision by its Virtual Assets Regulatory Authority (VARA), established last year. Furthermore, Dubai is proactively working towards attracting cryptocurrency firms to endow their presence in Dubai.
Similar Regulations Are Made in Other Countries As Well
Regulators in locations like Japan are taking serious steps to forbid anonymous cryptocurrencies. Furthermore, the European Union is scrutinizing whether to
disallow tokens that make it tricky for law enforcement authorities and other regulators to trace funds. According to Angela Ang of TRM Labs – a blockchain intelligence firm – “Any attempts at concealing fund flows presents an immense obstacle when looking into unlawful activities, so naturally, regulators respond heavily towards this kind of asset type and mechanism.”
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