VARA – The First Virtual Assets Regulatory Authority
The First Virtual Assets Regulatory Authority is set up in Dubai to mark its domination in the Metaverse segment. The entity will be known as VARA and will operate as a collaborative engagement between global Virtual Asset Service Providers (VASPs), Industry Thought – leaders, and International Regulatory Authorities.
As an establishment, VARA will provide a secure and progressive operating framework for the virtual asset (VA) sector. This will help in scaling, investor protection, regulation of the market through the pre-defined governing principles of the services and activities. It is an important and courageous movement by Dubai Government and its confidence in Virtual Assets. It foresees VA as integral to the future digital economy. By this, Dubai aims to become the world’s Virtual Assets Capital.
What is VARA?
“VARA has been established as a mission-focused Regulator, to nurture and safely scale a rapidly decentralizing business landscape founded on four cornerstone principles – secure cross – border interoperability, informed investor adoption, market protection prioritization and responsible industry participation” – Sheikh Hamdan added.
Dubai is planning and creating a prototype Decentralized Regulator Model. The emirate is inviting international thought leaders – global authorities, governance custodians, and industry shapers – to participate, exchange knowledge, and problem – solve collectively so that we enable the dynamic virtual assets sector to build economic resilience, accelerate social inclusion, and address environmental sustainability.
How VARA works?
As reported by WAM, the official news agency of the United Arab Emirates, H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council Inaugurated the VARA MetaHQ on the Sandbox. During the ceremony he mentioned “Dubai maintains a leading position at the forefront of technological transformation. We have exceeded the role of an early adopter to become an innovator and participant in shaping the future of this technology. Today, VARA joins the Metaverse to become Dubai’s – and the Metaverse’s – first government authority, ushering in a new era in which Dubai Government utilizes modern innovations to extend its services and regulatory power to audiences in an open technological expanse, without constraints or borders.
VARA represents a serious effort to build a new, powerful economic sector that contributes to the nation’s economy and creates new investment opportunities, and this is possible through the safe and modern regulatory solutions we envision. Our presence in the Metaverse therefore marks the beginning of a new phase in the Dubai Government’s march for the future; one that will have a positive impact in the long run.”
Benefits of VARA
In a move to join hands for enabling economic freedom in the Metaverse, VARA is joining private sector game-changers, innovators and market makers across ICT, Financial and Professional services, Lifestyle, Entertainment and FMCG beyond the world of gaming and VASPs.
The entity will serve as its primary channel to deal VASPs across the globe to create applications, help younger licensees enter the metaverse, share knowledge and experiences with consumers in a open manner and peer regulators to create knowledge and awareness, enable safe approval, and smooth global operation.
Also, the main objective of the office is – Dubai aims to lead the virtual asset industry as the driver of the global future economy. The emirate has sophisticated and modern legal framework regulating virtual asset activities As the first niche regulator for the VA sector globally, VARA’s Metaverse HQ also makes the UAE the first jurisdiction to enter this platform, reflecting our leadership’s aspiration to facilitate a borderless new market enabling sustainable economic freedom. Other than getting direct economic benefit for Dubai, it also aims to GDP acceleration for Dubai, it wants to take a first step in shared learning and expertise development of global regulators. The move will be beneficial for international community in terms of getting yield from the virtual economy with safety and sustainability.
VARA – The First Virtual Assets Regulatory Authority