Dubai seeking to regulate Crypto Tokens

[calnana]

Dubai just issued a consolation paper aiming at regulating service providers wishing to deal with/in "crypto tokens" https://dfsaen.thomsonreuters.com/s...e_store/CP143_Regulation_of_Crypto_Tokens.pdf

Interesting to those that wish to start a business in this sector. For the retails... does this have any effect on individuals using a foregin exchange to trade their own funds? Does this effect the possibility of buying property with crypto?

 

[CaptK]

This is purely for companies issuing crypto, managing, creating, buying and selling of virtual assets.‌

 

[calnana]

Yup, that's what all the official docs I could find‍ say. Idk how some media agencies reported otherwise. News is very positive if so, imho.⁠

 

[EuroKiss]

“Absence of price risk”… “person clearly responsable and liable to the investors”…
Ok they just‌ killed the crypto market in Dubai! smi(&%

 

[CaptK]

At least they have‌ something in place but also you cover yourself with your terms and conditions. This is‍ simply been put in place to ensure there is no bad press about DUBAI regarding⁠ crypto project scams.

It's a trusted jurisdiction due to the laws and the punishment if⁤ you do not abide by them are very heavy. So it would be looked at⁣ more seriously than other offshore jurisdictions.

 

[EuroKiss]

Just these two statements make absurd for any company to issue tokens there.
I guess‌ traders and exchanges can work with such rules, but asset tokens issuing - ICO/IDO/IEO -‍ is dead in Dubai.

 

[hlepic211]

Well that's actually a good thing.⁠ Most of them are cash grabs anyway. The longer they stay out of Dubai the⁤ better for the legit traders and those seeking to cash out tax free.

 

[JamesDonkey]

Decentralized non KYC would solve, at leat partially, this issue, wouldn't they?

 

[EuroKiss]

When you go public - IPO⁠ - company is liable to the investors, and you do not guarantee any “price stability”,⁤ so these rules are a non-sense.

Yeah, but it is going from a⁢ ruled af to a ruleless situation. I’d prefer a set of intelligent and practical rules,︀ but I am guessing is too much asking.

 

[Bill D]

Are you sure it does not have any effect on‍ randoms residents which day trade crypto ?
Here seem to say otherwise : New Dubai⁠ law: All you need to know about virtual assets and regulations

Will all randoms residents⁤ of uae still be able to day trade crypto without any registration or tax ?⁣
Will the platforms outside uae be still available to uae residents ? binance etc

 

[CaptK]

Binnace have moved HQ to UAE the CEO now lives in Dubai in an amazing‌ penthouse.

He does not want to end up like Jack Ma, who has been missing‍ for months.

Retail traders should not be affected, this is more along the lines of⁠ encouraging projects to move over to the Dubai and give confidence via the jurisdictions. Marshall⁤ Island, BVI, Cayman, and the rest have been demonised. UAE is seen as an Eldarado⁣ to most people.

 

[troubled soul]

Which building ??
Palm or Downtown?

 

[Bill D]

Yes, but what about all other platforms, will they‍ still be serving uae residents

 

[CaptK]

The UAE is quite liberal so for now you can use whichever platform you want.‌

There is some form of tax aimed at this move which will become apparent soon.‍

 

[Bill D]

Interesting, you think if some annual fix licence fee amount‍ to be able to trade crypto ?
Or actual tax % on turnover or profits⁠

 

[CaptK]

Like banks and insurance companies in Dubai pay tax @20%. This partly due to international‌ credit rating and of course revenue for the government.

Retail clients won't be taxed but‍ project owners will.

You have to pay to play at some point.

 

[calnana]

Let’s see what the actual details are. The wording in the law might refer to‌ all individuals… don’t know how I’d feel about that.

 

[RobertNozick]

https://u.ae/en/about-the-uae/digital-uae/regulation-of-digital-properties
https://dlp.dubai.gov.ae/Legislatio...No. (4) of 2022 Regulating Virtual Assets.pdf