By George Ward
According to industry experts, 2023 will be the year many countries set specific cryptocurrency rules. Governments worldwide are starting to see how blockchain technology can be used and are putting controls in place to encourage growth.
Dubai is a popular place for cryptocurrency-related meetings and conferences, and the city has now put out rules for crypto. The region’s financial regulator, the Virtual Assets Regulatory Authority (VARA), wants to make Dubai a crypto hub worldwide.
VARA further says that Virtual Assets Service Providers (VASPs) in Dubai must follow four sets of rules to provide their services. This rulebook includes rules about compliance, risk management, and how to act on the market.
Some rulebooks pertain to specific activities. The guidelines aim to give VASPs a set of rules for running their crypto businesses in Dubai.
Crypto Regulations In Other Regions
Meanwhile, VARA has also released marketing, advertising, and promotion rules for crypto market players. Anyone who disregards the rules is subject to fines which range from 50,000 to 200,000 AED.
If a business breaks the same rule twice a year, it will have to pay twice as much, up to 500,000 AED (about $136,000). Meanwhile, Irina Heaver, a lawyer for crypto firms, thinks that explicit rules are good for entrepreneurs and consumers in Dubai.
Besides Dubai, countries worldwide are pushing for crypto regulation, including licensing for crypto firms. The United Kingdom is in the second phase of figuring out how to regulate cryptocurrencies.
Its Finance Ministry is looking for feedback from people in the industry. In the aftermath of the FTX crash, Italy wants to license crypto. Binance, Nexo, Gemini, Crypto.com, and Coinbase are just some of the exchanges that already have operating permits in Italy.
Also, the country has started taxing crypto profits over 2,000 Euros with a 26% capital gains tax. France requires crypto businesses to get pre-approval before they start operating. Hong Kong wants to be a worldwide crypto powerhouse with solid regulations.