Sam Bankman-Fried (SBF), CEO of FTX, a cryptocurrency exchange based in the Bahamas, recently tweeted that the company has received regulatory clearance to operate in Dubai. He also expressed enthusiasm for adhering to the legal framework that protects users.
In this tweet, SBF mentioned:
“FTX is excited to be regulated in Dubai by VARA! We’re excited to expand out our presence in the city, and to work with regulators who have taken the lead in establishing a regulatory framework for digital assets, protecting customers and allowing for innovation.”
FTX Exchange, FZE, a subsidiary of FTX, was awarded permission to conduct business in Dubai at the beginning of July. FZE was awarded its operating license as part of the MVP program run by the Dubai Virtual Assets Regulatory Authority (VARA). This program’s primary objective is to ensure that Dubai’s economic expansion is safe and sustainable.
Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of the United Arab Emirates, announced the law that regulates virtual assets in Dubai in February 2022. This information is provided for those who are not familiar with the topic. As a direct consequence of the law, the VARA was founded on March 11th, 2022.
Except for the Dubai International Financial Center, the authority exercises jurisdiction over the virtual asset sector over the entirety of the emirate, including both special development zones and free zones. According to the strategy developed by the Dubai Securities and Exchange Higher Committee, the United Arab Emirates (UAE) seeks to position itself worldwide in the virtual asset industry through VARA.
VARA: A Brief Overview
The Government of Dubai has designated the Virtual Assets Regulatory Authority (VARA) as the official governing body for international trade in Dubai. Its goal is to establish Dubai as a global and regional hub for virtual assets, making it the world’s leading virtual assets regulator. The state’s digital economy will benefit, and the state will attract more investors as a result.
In addition, the VARA entices the most prominent virtual asset operating enterprises to set up shop in Dubai. These businesses also supply the regulations that are essential for controlling virtual assets.
At present, VARA establishes guidelines on acceptable audience segments and content obligations for virtual asset-related communications. The authority supervises the promotions conducted by entities utilizing Dubai-based media sites, search engines, and publishing channels that explicitly target consumers within the Dubai market.
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