Dubai’s Crypto Regulator VARA Plans New Rules on Large Holders

New rules that force cryptocurrency companies to reveal the identity of significant token holders will be introduced by Dubai’s Virtual Assets Regulatory Authority (VARA). Enhancing transparency and safeguarding investors in the city’s growing virtual asset market are the goals of the program.

VARA Seeks Greater Transparency in Crypto Holdings

Significant token holders must be reported by authorized cryptocurrency issuers and service providers under the proposed regulations, especially if a creator or organization controls the majority of the supply. In an interview with The Standard, VARA CEO Matthew White clarified that the new policies will assist investors in evaluating their risks. Transparency is crucial because a lot of tokens are impacted by outside parties, including venture capital firms.

However, since Bitcoin transactions are linked to wallet addresses rather than actual people, VARA does not plan to require direct identification of individuals. White emphasized that because of blockchain’s transparency, authorities may monitor major holdings without having to divulge individual identities. Additionally, he stated that VARA intends to guarantee that investors who buy digital assets are given a “clear description of risks.”

The regulator has already begun implementing these measures, with most of the plans scheduled for completion in Q1. The verification process for disclosing major holders remains unclear, but VARA is actively working on refining the framework.

These new regulations follow VARA’s recent warnings about meme coin promotions. The regulator previously cautioned investors about the risks associated with these digital assets, emphasizing concerns over price manipulation, liquidity issues, and fraudulent activities. Meme coins, often driven by social media hype and misleading promotions, “lack intrinsic value,” VARA stated.

Dubai has positioned itself as a global hub for crypto innovation, but regulators are tightening oversight to maintain investor confidence. With these upcoming rules, VARA aims to create a safer environment while ensuring the crypto market remains transparent and accountable.