The recent announcement of Dubai’s new virtual assets’ laws and the creation of the Dubai Virtual Assets Regulatory Authority (VARA) has been welcomed by entrepreneurs in the UAE who are active in the local cryptocurrency and NFT art sector.
Revealed by the Dubai Ruler, Sheikh Mohammed bin Rashid Al Maktoum, the Dubai Virtual Asset Regulation Law is expected to boost trading volumes in cryptocurrencies, while the Virtual Asset Regulatory Authority (VARA) – which has been set up under the new law – will regulate, supervise, and control virtual asset services.
The Dubai Virtual Asset Regulation Law aims to create an advanced legal framework to protect investors and design international standards to govern the virtual asset (VA) industry.
“As an artist and entrepreneur who deals extensively in NFTs, I find this recent development to be crucial for the growth of my art business and the region’s NFT artwork industry,” said Kristel Bechara, who is the first Arab female artist to launch NFTs from the UAE.
Kristel currently works on her art from her studio in Onyx Tower, Dubai while her gallery is located at Gate Avenue, Dubai International Financial Centre.
“I am incredibly excited and look forward to all the changes that this announcement will bring to the local crypto space. Dubai is already considered to be a global hub and hotspot within the global crypto sphere, due to its growing community of crypto technology leaders, enthusiastic NFT collectors, and crypto investors,” Bechara added.
“This news of VARA and all the regulations that it will enforce will only solidify Dubai’s reputation of being a visionary, key player in the future of virtual assets.”
The Virtual Asset Regulatory Authority will also be essential in establishing a trusted framework of rules and regulations that will attract new investors and creators to the market.
Bechara explained: “There are investors and creators who are currently apprehensive about the validity and potential of virtual assets. Currently, only a minority of early adopters have exposure to crypto and/or virtual assets and to quote Changpeng Zhao, the CEO of Binance, regulated platforms and clear laws will increase global adoption and growth.
“These regulations will also provide an extra layer of protection for NFT creators like myself, and will no doubt deter illegal behaviour and scammers who could have a negative influence on the whole ecosystem.”
The digital asset market is only just starting and is already making waves across all economies. A regulatory framework such as VARA could bring structure to the market and will fuel its expansion.
“I hope the transitionary phase for the application of all the new VARA regulations goes smoothly and that we will be looking at a wider more active and secure crypto-trading environment for everyone,” Bechara concluded.
“I will be following these developments closely to ensure that my art business is prepared to comply with all the regulations that VARA will be bringing to the market. After all, being in Dubai has opened incredible opportunities for artists and creators. This will be another prospect to look forward to.”
