Dubai bans anonymous cryptocurrency issuance and transactions

Dubai bans anonymous cryptocurrency issuance and transactions

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Author: Robert Strickland
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Dubai bans anonymous cryptocurrency issuance and transactions
The use of coins that "interfere with transaction tracking," such as Monero and Zcash, is banned by a new digital asset document

Dubai (one of the emirates of the UAE) has banned the issuance and transactions of anonymous cryptocurrencies. The restriction is imposed by a new set of rules on virtual assets and related activities published by the emirate's regulator, The Dubai Virtual Assets Regulatory Authority (VARA).

Attackers often use these tokens to hide the movement of stolen funds.

"A crusade against anonymous cryptocurrencies. What awaits private tokens

A set of rules adopted by the Dubai regulator bans cryptocurrencies that "enhance anonymity," such as Monero, Dash and Zcash. According to the document, this is a type of virtual asset that "prevents transactions from being tracked or records of ownership through public blockchains, and for which VASP (crypto-service provider) has no technology or mechanisms to track them or determine ownership of them."

"The issuance of anonymity-enhancing cryptocurrencies and all activities related to them are prohibited in the emirate," the law states.

The new rules also establish mandatory licensing for cryptocurrency companies operating in the region. They detail the procedure for issuing, storing and exchanging cryptocurrencies, cybersecurity standards, and requirements for various activities related to digital assets.

After the introduction of mandatory licensing for cryptocurrency-related activities in Dubai, the regulator has already received hundreds of new license applications. According to Bloomberg, to cope with the flood of applications, VARA plans to quadruple its staff over the next few months.

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