- Dubai’s Virtual Assets Regulatory Authority (VARA) banned anonymous-focused cryptocurrencies.
- Zcash (ZEC) and Monero (XRM) are among the tokens banned in Dubai.
- Individuals who break the restrictions will have to pay a stiff fine of 20 million dirhams ($5.4 million).
Virtual Assets Regulatory Authority (VARA) of Dubai has published its local crypto industry guidelines. These rules list ten basic rules, such as the need for a license, steps to stop money laundering, how to market products, and the fact that anonymous coins are not allowed.
According to a tweet posted by CryptoNewsLansd, the prohibition, and the new regulations apply to a variety of cryptocurrencies, including Zcash (ZEC) and Monero (XMR). In the tweet, it says that local businesses and organizations are not allowed to help make these coins in any way.
VARA states that the rules were made to give service providers clear guidelines for their operations and business models and to reduce the risks that different activities with virtual assets pose to the market.
A similar prohibition on privacy coins was implemented in Japan in 2019, and a number of cryptocurrency exchanges, like Huobi and BitBay, have removed several products from their platforms in recent years. Coinbase removed support for ZEC in the UK in 2019, and the company has completely ignored requests to include XMR.
Any organization that describes itself as being in the business of virtual assets is required to comply with the VARA and get a license. Those who trade cryptocurrencies on their own behalf and invest at least $250 million in them are obliged to register with the VARA.
The costs associated with receiving services may range anywhere from 40,000 dirhams (about $10,889) to 200,000 dirhams (approximately $54,449). The governing body has the power to take away a license if a business goes bankrupt or breaks the rules. A recent report states that Dubai’s digital asset ecosystem has attracted more than 500 crypto businesses.
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