• Dubai’s VARA recently prohibited operations with privacy coins such as XMR and ZEC.
• The new regulations imposed by the regulator also enforced certain rules on the domestic cryptocurrency sector.
• The updated regime aims to provide maximum security for local consumers and establish Dubai as a global center of blockchain technology.
Dubai Forbids Operations With Monero, Zcash, and Other Privacy Coins
The Virtual Assets Regulatory Authority (VARA) of Dubai has recently forbidden all activities involving privacy coins like Monero (XMR) and Zcash (ZEC). To turn the city into an „international hub for virtual assets“ the regulator has enforced certain rules on the domestic cryptocurrency sector.
Authorization Requirements for Crypto Firms
In order to obtain a provisional license, crypto firms in Dubai will now have to comply with anti-money laundering protocols as well as prevent insider trading, marketing restrictions, and monitoring criminal activities that involve digital assets. These authorization requirements are intended to maximize security for local consumers.
Comment From Senior Policy Advisor
Angela Ang – Senior Policy Advisor at blockchain intelligence firm TRM Labs – commented that “Any obfuscation of fund flows poses a challenge to detecting illicit activities, so it is unsurprising that regulators react strongly to these kinds of asset classes and mechanisms.“
Binance & Coinbase Provisional Licenses
The regulation also gave provisional licenses to Binance and Coinbase – two leading exchanges in the world – enabling them to operate within Dubai’s economy. This reflects Dubai’s ambition to become a major player in the international cryptocurrency market.
In conclusion, Dubai is determined to be an integral part of the global crypto sector while keeping its citizens secure from money laundering schemes or any other fraudulent activities related to digital assets.