United Arab Emirates: Dubai Virtual Assets Law including establishment of Dubai Virtual Assets Regulatory Authority enters into force

On 11 March 2022, the Dubai Law No. 4 of 2022 on the Regulation of Virtual Assets in the Emirate of Dubai (Virtual Assets Law) was published in the Official Gazette of the Government of Dubai and came into force. The Virtual Assets Law governs activities involving virtual assets and related services throughout the Emirate of Dubai, with the exception of the Dubai International Financial Centre (DIFC), which has its own regulatory regime. The Virtual Assets Law establishes the Dubai Virtual Assets Regulatory Authority (VARA) as the competent regulatory and licensing authority for any activities related to virtual assets. The responsibilities of VARA include the enforcement of the Virtual Assets Law's requirements, the enactment of further rules and regulations and the development of a general strategy and strategic plans for the regulation of virtual assets in Dubai. Furthermore, VARA acts as the primary supervisory authority to monitor trading, grant authorisations and impose punishment for infractions. VARA is also required under the Virtual Assets Law to defend the interests of beneficiaries. Finally, the Virtual assets Law allows VARA to delegate any of its tasks via agreements that specify the length as well as the parties' rights and obligations.