Dubai's Virtual Asset Regulator Intends To Establish A Presence In The Metaverse.

2022-05-05 | Selina Mathew

Dubai's Virtual Asset Regulator Intends To Establish A Presence In The Metaverse.

Sheikh Mohammed bin Rashid Al Maktoum formed VARA and unveiled a new legal framework for crypto in Dubai less than two months ago.

As part of its intentions to establish a metaverse headquarters, the Dubai Virtual Asset Regulatory Authority, or VARA, has bought land in the virtual reality environment The Sandbox (SAND).

VARA said the metaverse entry was intended at encouraging "collaborative interaction" between virtual asset service providers, international regulatory bodies, and industry leaders, according to a statement by Emirates news agency WAM on Tuesday. Furthermore, the Dubai regulator stated that opening a "MetaHQ" office will help it target "younger licensees" who are interested in entering the virtual world.

"By extending VARA's resources to a global audience via the Metaverse, Dubai is prototyping a Decentralized Regulator Model, inviting international thought leaders — global authorities, governance custodians, and industry shapers — to participate, exchange knowledge, and problem-solve collectively so that we can enable the dynamic virtual assets sector to build economic resilience, accelerate social inclusion, and address environmental sustainability," said Sheik Mohammed.

Sheikh Al Maktoum formed VARA and issued a bill setting a legal framework for crypto in the Emirate of Dubai less than two months ago, signaling a shift toward the metaverse. Residents of Dubai will be required to register with VARA before engaging in crypto-related activities under the new regulation. Violations may result in penalties or the suspension or cancellation of business licenses.

VARA is one of the first authorities to do so, despite the fact that numerous corporations declared they will be building offices in the metaverse following Facebook's rebranding to Meta in October 2021. The US Securities and Exchange Commission said on Tuesday that it will increase its crypto enforcement branch by 20 personnel in order to be "better positioned to monitor misbehavior in the crypto markets," but no such move into the metaverse has been announced.


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