In March 2022, the UAE established VARA (the Virtual Assets Regulatory Authority) to regulate the virtual asset industry in the UAE for crypto brokers in Dubai, in order to become a global hub for this burgeoning industry.
The crypto-currency broker platform
UAE-based, Middle East-focused crypto-currency platform Bitoasis is the first MVP (minimum variable product) trading broker to obtain an operational license granted by Dubai’s regulatory authority.
“The crypto-currency platform has announced that it can now offer its brokerage services to retail and institutional investors from its headquarters in Dubai,” according to VARA regulations
The crypto-currency license in the UAE
In March 2022, the Dubai VARA was established with the aim of making the Emirates a global hub for the virtual asset industry by regulating the nascent digital currency sector within the emirate. So far, no company has received approval under the FMP (full market product) phase, according to a company statement.
Henson Orser, CEO of VARA explains, “VARA’s ecosystem aims to strike a balance between creating value, mitigating risk and enhancing investment opportunities, while ensuring consumer protection.”
Understanding what crypto-currency is
Crypto-currency is a digital currency not controlled by a government or central bank. It is based on blockchain technology that stores and verifies transactions. Transactions are secured through sophisticated encryption, making them very difficult to hack or forge.