Dubai bans coins that interfere with transaction tracking, such as Monero and Zcash. Crypto-Upbotes expert review
Dubai (one of the UAE emirates) has banned the issuance and transactions of anonymous cryptocurrencies. The restriction was imposed by a new set of rules on virtual assets and related activities published by the emirate’s regulator, The Dubai Virtual Assets Regulatory Authority (VARA).
Authorities in various countries have a negative attitude towards anonymous cryptocurrencies and take various measures to restrict their use. Because with the emergence of such coins, the number of fraudulent attacks and financial fraud with cryptocurrencies has increased significantly. Attackers often use these tokens to hide the movement of stolen funds.
A set of rules adopted by the Dubai regulator bans cryptocurrencies that “enhance anonymity,” such as Monero, Dash and Zcash. According to the document, this is a type of virtual asset that prevents transactions from being tracked or records of ownership through public blockchains, and for which the VASP (cryptoservice provider) has no technology or mechanisms to track them or determine ownership of them.
The issuance of anonymity-enhancing cryptocurrencies and all activities related to them are prohibited in the emirate, the new law says.
The new rules also establish mandatory licensing for cryptocurrency companies operating in this region. They detail the procedure for issuing, storing and exchanging cryptocurrencies, cybersecurity standards, and requirements for various activities related to digital assets.
Our experts note that after the introduction of compulsory licensing of cryptocurrency-related activities in Dubai. The regulator has already received hundreds of new license applications. To cope with the flood of applications, VARA plans to quadruple its staff over the next few months.