Dubai's financial services authority seeks to regulate cryptocurrency with new law

Dubai's Financial Services Authority (DFSA) released a 56-page draft cryptocurrency consultation paper yesterday called the The Dubai Virtual Asset Regulation Law (DVAR).

The UAE emirate of Dubai aims to become a global player in the cryptocurrency economy with this new virtual assets law.

“The future belongs to whoever designs it,” Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum said on Twitter.

The new bill is aimed strictly at cryptocurrency tokens, and it excludes utility tokens, non-fungible tokens and central bank digital currencies, “We are proposing to exclude NFTs from the scope of our current proposals on the basis there is no Financial Service being provided,” said the consultation paper.

The DVAR has specific provisions that forbid the use of anonymous cryptos and algorithmic tokens which alter their supply to stabalize the price.

The new bill will be submitted for approval after it passes the amendments period.

The final version of the DVAR will be released to the public before being passed.

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