Sheikh Mohammed announces first-of-its-kind law for virtual assets (NFTs and crypto)

[troubled soul]

https://www.khaleejtimes.com/uae/sheikh-mohammed-announces-first-of-its-kind-law-for-virtual-assets

Sheikh Mohammed announces first-of-its-kind law for virtual assets​

 

[calnana]

Some news agencies (Dubai establishes virtual asset regulator and announces new crypto law) reporting that residents will have to register with the authority (VARA) before they take part in crypto activities. Don't know if that applies to people just trading their own funds on an exchange. As usual, we have to wait and see.

 

[troubled soul]

Statement about the Regulatory and Supervisory Framework to assure AML/CFT Compliance across Virtual Assets in the UAE​

https://www.sca.gov.ae/en/media-cen...assure-amlcft-compliance-across-67c64b33.aspx

 

[Bill D]

Some news agencies (Dubai establishes virtual asset regulator and announces new crypto law) reporting that residents will have to register with the authority (VARA) before they take part in crypto activities. Don't know if that applies to people just trading their own funds on an exchange. As usual, we have to wait and see.

https://www.khaleejtimes.com/econom...-to-know-about-virtual-assets-and-regulations
it says there "

>>Is it illegal to trade virtual assets without VARA’s permission in Dubai?​

Yes. It is prohibited for any person in the Emirate to engage in activities without VARA’s authorisation. The person wishing to practice any of the virtual asset activities must establish a presence in Dubai to conduct business."

it would mean it is illegal for randoms residents of UAE to trade crypto (on online platforms as binance etc...) without licence, maybe would require complicated accountancy etc on individuals ?

 

[calnana]

https://www.khaleejtimes.com/econom...-to-know-about-virtual-assets-and-regulations
it says there "

>>Is it illegal to trade virtual assets without VARA’s permission in Dubai?​

Yes. It is prohibited for any person in the Emirate to engage in activities without VARA’s authorisation. The person wishing to practice any of the virtual asset activities must establish a presence in Dubai to conduct business."

it would mean it is illegal for randoms residents of UAE to trade crypto (on online platforms as binance etc...) without licence, maybe would require complicated accountancy etc on individuals ?

Yes, but I haven't been able to find any official docs or statements that say that. All the docs I've seen refer to service providers. My question is, where did they get this information from?

It would indeed suck if the above is true, depends on the details though.

 

[Silvio]

https://www.khaleejtimes.com/econom...-to-know-about-virtual-assets-and-regulations
it says there "

>>Is it illegal to trade virtual assets without VARA’s permission in Dubai?​

Yes. It is prohibited for any person in the Emirate to engage in activities without VARA’s authorisation. The person wishing to practice any of the virtual asset activities must establish a presence in Dubai to conduct business."

it would mean it is illegal for randoms residents of UAE to trade crypto (on online platforms as binance etc...) without licence, maybe would require complicated accountancy etc on individuals ?

9% tax... grey listing... trading crypto becomes illegal .. looks like UAE crackdown is in full force.

I can already imagine the replies of some Dubai fans here: "It's only official, actually nothing really happened, you can still do anything you want, just compliance will be tougher, it is actually GOOD for Dubai"

 

[calnana]

9% tax... grey listing... trading crypto becomes illegal .. looks like UAE crackdown is in full force.

I can already imagine the replies of some Dubai fans here: "It's only official, actually nothing really happened, you can still do anything you want, just compliance will be tougher, it is actually GOOD for Dubai"

If it's just for service providers then it is good news imho. If not, then it sucks yes. It's basically what the EU proposed a few months back and then backtracked... having a database linking people with their private wallets/addresses... insane.

 

[Fred]

9% tax... grey listing... trading crypto becomes illegal .. looks like UAE crackdown is in full force.

I can already imagine the replies of some Dubai fans here: "It's only official, actually nothing really happened, you can still do anything you want, just compliance will be tougher, it is actually GOOD for Dubai"

Did I heard Dubai?

Joke aside - the truth is:

Nobody knows.

Everyone needs to decide on his own if he wants to make the move or not - I mean whatelse is outhhere anywhere if we look for the magic 0% tax? Only Middle East countries less developed then Dubai and a few Caribbeans - that's it - so eitehr we learn to deal with it or start paying taxes.

Just a quick hint:

- Vanuatu CIB program is more or less dead since EU announced the cancellation of Visa Free Travel to EU
- Hamilton Reserve Bank and Bank of Nevis International did lost both same week there Correspondence network

That are countries we have to compare the UAE with - beside of that you have Bahamas Residence for 750k$ and Cayman Island Residence for 600k$ property investment and here Permanent Residence only after 8 years.

People fleeing from Gerogia, Malta and Cyprus - that's at least what we see - so for sure it's not better in the EU.

Welcome to the Endgame - Ride the wave as long as it lasts.

Im sure @Martin Everson already watching this with popcorn is his hands.

 

[Martin Everson]

Im sure @Martin Everson already watching this with popcorn is his hands.

You already know that .

 

[Bill D]

If it's just for service providers then it is good news imho. If not, then it sucks yes. It's basically what the EU proposed a few months back and then backtracked... having a database linking people with their private wallets/addresses... insane.

1)Also the question is are foreign exchange who aren't based in UAE and do not have that VARA licence still able to provide access to UAE residents ? It would mean you lose access to most platforms ?

2)Secondly I cannot find clear info on that : "Yes. It is prohibited for any person in the Emirate to engage in activities without VARA’s authorisation"
On some sites they mention only services and exchanges need this to register, on others every single resident would be subject to that, and what about the 9% tax ?

If someone knows or have a hint would be great

 

[Soundpeats]

1)Also the question is are foreign exchange who aren't based in UAE and do not have that VARA licence still able to provide access to UAE residents ? It would mean you lose access to most platforms ?

2)Secondly I cannot find clear info on that : "Yes. It is prohibited for any person in the Emirate to engage in activities without VARA’s authorisation"
On some sites they mention only services and exchanges need this to register, on others every single resident would be subject to that, and what about the 9% tax ?

If someone knows or have a hint would be great

I havent seen (even UAE/Dubai specialists) being able to answer your second question, and I am not talking just on this forum, but in general. I imagine it might be too early to know

 

[Risehigh]

Seems like time again for new individual nation islands tried and failed so often in history, hyped to see if web3 will allow it this time.

 

[AMD]

Welcome to the Endgame - Ride the wave as long as it lasts.

your are so damn right. Endgame may be the 100% correct word for what is happening in this shitty world.

I'm sure new stuff will arrive to combat what is going on. Black money must flow, there is so much of it, somewhere it need a home.

 

[Bill D]

From cointelegraph
It seems that trading crypto (your own asset) won't be regulated, only the point d) confuse me

Can someone confirm "custody and management of cryptocurrencies" means to operate a custody business and manage others cryptocurrency, not to custody your own assets (as a trader of your personal assets) ?

 

[Fred]

View attachment 4417
From cointelegraph
It seems that trading crypto (your own asset) won't be regulated, only the point d) confuse me

Can someone confirm "custody and management of cryptocurrencies" means to operate a custody business and manage others cryptocurrency, not to custody your own assets (as a trader of your personal assets) ?

The whole thing is for regulated entities dealing with 3rd party funds - you are unaffected of this regulations when you manage your own funds.

 

[manukahoney]

Interesting.
It seems you'll need a licence if you provide any kind of crypto service - from custody to exchange. Makes sense.

However it doesn't cover some very common cases
1) Getting paid in crypto (as a business entity). Will you need a licence to issue invoices in USDT? Or BTC and then converting proceeds in USDT? Unclear.

2) Handling the crypto assets (storing, exchanging etc). For instance you accept payments from customers in crypto, however the service takes 3 months to be delivered, so you basically store the customer funds for 3 months. Does it require a licence?

3) Paying the employees in crypto (buying USDT, storing it for some time, sending payments).

A lot of grey areas and as usual very little use cases - it seems in Dubai everything is made as opaque as possible in order to please the global partners and at the same time to calm expats with questionable capitals.

 

[Fred]

A lot of grey areas and as usual very little use cases - it seems in Dubai everything is made as opaque as possible in order to please the global partners and at the same time to calm expats with questionable capitals.

That's it.