Dubai Takes a Stand Against Privacy Coins with Ban on Anonymity-Enhancing Crypto
Dubai, a jurisdiction in the United Arab Emirates (UAE), prohibited by law the issuance of privacy coins such as monero (XMR) and zcash (ZEC), as well as any activity related to them.
According to the new set of crypto regulations,
"The issuance of Anonymity-Enhanced Cryptocurrencies and all VA Activity[ies] related to them are prohibited in the Emirate."
The regulator defines these "Anonymity-Enhanced Cryptocurrencies" as
"Means a type of Virtual Asset which prevents the tracing of transactions or record of ownership through distributed public ledgers and for which the VASP has no mitigating technologies or mechanisms to allow traceability or identification of ownership."
The document titled 'The Virtual Assets and Related Activities Regulations 2023' was published on February 7, stating that it set out the regulatory framework governing virtual assets and all related activities in the nation, "including the general and specific supervision and enforcement powers of VARA."
It noted that the Dubai Virtual Assets Regulatory Authority (VARA) was established and authorized in 2022 by Regulating Virtual Assets in the Emirate of Dubai (Dubai VA Law) to regulate Virtual Assets and Virtual Asset Service Providers (VASPs).
Therefore, the regulations have set licensing and authorization requirements for VASPs and issuers that want to operate in Dubai.
Additionally, VARA has been given full power to make decisions and adapt laws related to cryptoassets where it sees fit, stating that,
"VARA may, in its sole and absolute discretion, classify, or otherwise provide clarification or opinion, by public notice either generally or in a specific case, on [among other things] any Virtual Asset, or type of Virtual Asset, as being prohibited in the
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