UAE-based law firm specialising in blockchain, cryptocurrency, web3 and fintech, KARM Legal Consultants, has published a report analysing the regulatory landscape for virtual assets in various jurisdictions.
As both the adoption and potential use cases of blockchain technology continue to grow, so have calls for greater regulation in that space. The last few years have seen various positive regulatory developments in the virtual assets sector, as different jurisdictions across the globe begin to recognise the potential of virtual assets services.
The report, ‘Virtual Assets Regulatory Framework: An Evolving Landscape‘, aims to identify key regulatory developments in regard to virtual assets across the UAE, Bahrain, Switzerland, Liechtenstein, UK, and USA.
The UAE, Bahrain, Switzerland and Liechtenstein have secured positions as leading virtual assets-friendly jurisdictions – thanks to their overall favourable regulatory ecosystems. The regulatory frameworks in these areas generally focus on several aspects of business such as token classifications, AML/KYC, custody of private and public keys, wallet configurations and client suitability assessments.
Recognising the difficulty of navigating the virtual assets regulatory landscape, KARM aims to simplify the framework with its newest report. It provides an overview of the regulations issued by the federal, emirate level and free zone authorities.
The report covers various licensing options available for virtual assets activities, token classifications, compliance requirements and capital requirements.
Virtual Assets Regulation in the UAE
The UAE was one of the first jurisdictions globally to introduce a regulatory framework governing virtual assets activities. In part thanks to a number of initiatives supporting the sector, the UAE has transformed into a global hub for virtual asset service providers.
The establishment of the Dubai Virtual Assets Regulatory Authority (VARA), a regulator exclusively focused on virtual assets, has strongly contributed to the development of an exceptional ecosystem for crypto businesses.
Kokila Alagh, founder of KARM Legal Consultants, discussed the report following its launch. Alagh said: “We hope the report can contribute to the ongoing conversations around the regulatory landscape for virtual assets. As the world of blockchain and cryptocurrency continues to evolve, it is crucial to keep up with the latest developments and understand how they impact the industry.”
The report was produced in collaboration with the regional blockchain ecosystem Crypto Oasis, as well as a number of legal experts, namely: Eric Hess of Hess Legal Counsel; UK solicitor Jonathan Geen; Andreas Glarner of MME and Thomas Nagele of Nagele Attorneys.