On Tuesday, Dubai’s Virtual Assets Regulatory Authority (VARA) declared that it would be the world’s first regulator to join the metaverse.
To better serve the metaverse, the authority has chosen The Sandbox as the site of its new metaverse HQ. Global Virtual Asset Service Providers (VASPs), Industry Thought-Leaders, and International Regulatory Authorities will be able to collaborate with VARA in the metaverse, according to a statement from the organization.
In order to allow the virtual asset industry to grow while protecting investors and the market, VARA was created. Services and activities, rather than specific products or technologies, will be the focus of regulation under the new law.
Today, Dubai’s Virtual Assets Regulatory Authority (VARA) made its debut in the Metaverse with the establishment of its Metaverse headquarters in the dynamic virtual world of ‘The Sandbox’. The initiative creates a new model to manage and expand Dubai’s government operations
— Hamdan bin Mohammed (@HamdanMohammed) May 3, 2022
Crown Prince of Dubai and Chairman of the Executive Council Sheikh Hamdan bin Mohammed Al Maktoum remarked at the inauguration of the VARA MetaHQ on the Sandbox that “Dubai maintains a leading position in the forefront of technological transformation. We have exceeded the role of an early adopter to become an innovator and participant in shaping the future of this technology.”
“Today, VARA joins the metaverse to become Dubai’s – and the Metaverse – first government authority, ushering in a new era in which Dubai Government utilizes modern innovations to extend its services and regulatory power to audiences in an open technological expanse, without constraints or borders.
When it comes to creating a new, robust economic sector that benefits the entire country and opens up new avenues for investment, VARA represents a significant step forward in that direction. There is a new era emerging in Dubai’s march toward its future, and it is one that will have a good impact in the long term, because of our position in the metaverse.
The Crown Prince said that VARA will “nurture and safely scale a rapidly decentralizing business landscape predicated on four cornerstone principles – secure cross-border interoperability, informed investor acceptance, market protection prioritization, and responsible industry engagement.”
According to Helal Saeed Almarri, Director General of Dubai World Trade Center Authority, “Dubai views the virtual asset industry as the key driver in the future economy.” To respond to the rapid expansion of Emirati law regulating virtual asset activities, VARA was founded at precisely the right time. Additionally, the UAE is the first jurisdiction to join VARA’s Metaverse HQ, which represents our leadership’s desire to foster an open new market that supports long-term economic freedom.
It is incumbent on us, as government, to act as a bridge so that investors and consumers can securely embrace and collectively scale the economy, as VARA has done by purchasing land in the Sandbox. Additionally, the VARA sees this as the first step toward shared learning and knowledge building across global regulators, so that the international community may benefit from a virtual economy that has been allowed to scale securely and sustainably, he added.
Cover Photo: Dubai Media Office
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