Dubai’s VARA Imposes Regulations Banning Use of Privacy Coins
The Virtual Assets Regulatory Authority (VARA) of Dubai forbade all transactions involving privacy coins like Zcash (ZEC) and Monero (XMR). To transform the city into an “international hub for virtual assets,” the government has also put some regulations into effect for the domestic cryptocurrency market.
Operations using digital currencies that increase anonymity, such as XMR and ZEC, are now prohibited in Dubai, the financial hub of the United Arab Emirates, according to a recently disclosed document.
The local watchdog has established permission standards that crypto businesses must meet before branching out into the area.
Observing whether an asset class is employed in criminal activity is one of the most essential concepts, along with marketing guidelines, insider trading prevention, and anti-money laundering standards. Senior Policy Advisor Angela Ang from blockchain intelligence company TRM Labs said: “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.”
The revised system intends to give local consumers the highest level of security possible while making Dubai a leading worldwide hub for blockchain technology. Binance and Crypto.com were earlier granted provisional licenses by the authority to offer services in the region, while FTX was permitted to set up regional offices.
Emirates Airline, the largest airline in the United Arab Emirates, announced plans to accept bitcoin as payment and to track aircraft data using blockchain technology.
The opulent five-star hotel Palazzo Versace Dubai is another illustration of Dubai’s pro-crypto position. Clients could use digital currencies to pay for lodging, spa treatments, and meals. Bitcoin (BTC), Ether (ETH), and Binance Coin are the supported assets (BNB).
In 2018, the Japanese government outlawed the use of privacy coins like Monero (XMR), Zcash (ZEC), and Dash (DASH) due to worries that criminals use them for their illegal activities.
These assets have also been taken off the platforms of some of the top exchanges. At the start of 2021, Bittrex made this decision without giving a specific justification.
In September 2022, Huobi Global halted the trade of seven privacy coins, including XMR and ZEC, “in compliance with the latest financial regulations.”
