UAE tightens control over virtual asset market

The authorities of the United Arab Emirates announced that control over the virtual asset market, including general supervision, will now be carried out not only by individual emirates, but also at the country level. The new directives come into force on January 15, 2023. This is the first time that UAE officials have introduced such rules for the Web3 space at such a high level. The goal declared by officials is to “ensure the safety of investors” and monitor the crypto industry. According to the regulator, cryptocurrency traders and investors face too serious risks: “The efforts of the state are aimed at creating an attractive environment for international companies and institutions involved in the virtual asset industry and providing services in the country.” So far, the regulators of individual emirates have been active. For example, not so long ago, the Dubai Virtual Assets Regulatory Authority (VARA) suspended the FTX license amid the bankruptcy of the crypto exchange.