Dubai Virtual Assets Regulatory Authority – Deep Dive Into New Regulations

The Dubai Virtual Assets Regulatory Authority (VARA) issued the much-anticipated executive regulations under the Law No. (4) of 2022 Regulating Virtual Assets in the Emirate of Dubai' ("DVAL") on February 07, 2023. DVAL governs virtual assets activities undertaken in and from the Emirate of Dubai ("Emirate"), including the special development zones and free zones but excluding the Dubai International Financial Centre.

VARA has issued the over-arching Virtual Assets and Related Activities Regulations 2023 ("VARA Regulations") and a suite of rulebooksthereunder, including (i) four Compulsory Rulebooks (namely, Company Rulebook; Compliance & Risk Management Rulebook; Technology & Information Rulebook and Market Conduct Rulebook) that set out, amongst others, mandatory conduct of business obligations and compliance requirements for Virtual Asset Service Providers ("VASPs") who meet VARA's licensing requirements; (ii) seven Activity-Specific Rulebooks that will apply