New legislation announced on Tuesday make it illegal to issue and engage in any other activity linked to cryptocurrencies that increase anonymity, such monero ($XMR), in Dubai.
The long-awaited United Arab Emirates (UAE) cryptocurrency regulations have been released, and they establish licensing and permission criteria for firms and issuers seeking to operate in Dubai.
According to the new regulations, a cryptocurrency that increases anonymity is “a type of virtual asset that prevents the tracing of transactions or record of ownership through distributed public ledgers and for which the [Virtual Asset Service Provider] has no mitigating technologies or mechanisms to allow traceability or identification of ownership.”
Regulators have taken action to forbid privacy-enhancing encryption in other countries, such as Japan. Additionally, the European Union is considering outlawing tokens that obstruct traceability.
According to Angela Ang, senior policy adviser at blockchain intelligence company TRM Labs, “Any obfuscation of fund flows poses a barrier to detecting illicit activity, thus it is expected that authorities respond aggressively to these kinds of asset classes and processes.”
The Virtual Assets Regulatory Authority (VARA), established in Dubai last year, regulates cryptocurrency-related operations there. The emirate has been trying to lure blockchain and cryptocurrency businesses to open offices in Dubai.
Stay with us for more daily crypto news. Comment your thoughts of these news on our social channels below