The Dubai Virtual Assets Regulatory Authority (VARA) has banned all activities related to privacy coins such as Monero (XMR) and Zcash (ZEC).
The regulator has also enforced certain rules in the domestic cryptocurrency sector to make the city an “international hub for virtual assets.”
Dubai’s new politics
According to the recently published documentTrading in anonymity-enhancing digital assets like XMR and ZEC are now prohibited in the financial heart of the United Arab Emirates: Dubai.
The local watchdog also set authorization requirements that crypto companies must pass before listing in the region.
The most fundamental principles include anti-money laundering obligations, marketing protocols, preventing insider trading, and observing whether the asset class is used in criminal activity. Angela Ang, Senior Policy Advisor at blockchain intelligence firm TRM Labs, commented:
“Any obfuscation of fund flows poses a challenge to detect illicit activity, so it is not surprising that regulators react strongly to these types of asset classes and mechanisms.”
The updated regime aims to provide maximum security for local consumers and establish Dubai as a global hub for blockchain technology. The regulator previously granted provisional licenses to Binance and Crypto.com to provide services in the area, while FTX was allowed to establish a regional headquarters.
The largest airline of the United Arab Emirates, Emirates Airline, unfolded intentions to accept bitcoin as a means of payment and use blockchain technology to track aircraft records.
Another example of Dubai’s pro-crypto stance is the luxurious five-star hotel Palazzo Versace Dubai. He permitted clients to pay for accommodation, spa services and meals in digital currencies. The supported assets are Bitcoin (BTC), Ether (ETH) and Binance Coin (BNB).
Not just Dubai
Japanese authorities banned the use of privacy coins, such as Monero (XMR), Zcash (ZEC) and Dash (DASH), in 2018 due to concerns that criminals would use such tokens in their illicit operations.
Some of the major exchanges have also removed those assets from their platforms. Bittrex did so in early 2021 without giving any particular reason.
global huobi pause trading seven privacy coins (including XMR and ZEC) in September 2022 “in compliance with the latest financial regulations.”
Binance Free $100 (Exclusive) – Use this link to sign up to receive $100 free and 10% off your first month’s fees for Binance Futures (terms).
PrimeXBT Special Offer – Use this link to sign up and enter the code POTATO50 to receive up to $7,000 on your deposits.
