Dubai’s Virtual Assets Regulatory Authority to establish metaverse HQ in world first

The authority will be establishing its metaverse HQ in the virtual world The Sandbox. In a statement, VARA said that its move into the metaverse is an attempt at making the regulator “accessible to its industry in their environment, and facilitate collaborative engagement between global Virtual Asset Service Providers (VASPs), Industry Thought-leaders, and International Regulatory Authorities.”

VARA was established to provide an operating framework for the virtual asset sector to be able to scale while also providing market and investor protections. It expects to regulate the governing principles of services and activities – rather than specific products and technologies.

Inaugurating the VARA MetaHQ on the Sandbox, Sheikh Hamdan bin Mohammed Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, said, “Dubai maintains a leading position at 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’s – first government authority, ushering in a new era in which Dubai Government utilises modern innovations to extend its services and regulatory power to audiences in an open technological expanse, without constraints or borders.

“VARA represents a serious effort to build a new, powerful economic sector that contributes to the nation’s economy and creates new investment opportunities, and this is possible through the safe and modern regulatory solutions we envision. Our presence in the metaverse therefore marks the beginning of a new phase in the Dubai Government’s march for the future; one that will have a positive impact in the long run.”

VARA was established “as a mission-focused regulator,” the Crown Prince added, noted that the authority will “nurture and safely scale a rapidly decentralising business landscape founded on four cornerstone principles – secure cross-border interoperability, informed investor adoption, market protection prioritisation and responsible industry participation.”

Helal Saeed Almarri, Director General, Dubai World Trade Centre Authority said, “Dubai views the virtual asset industry as the driver of the global future economy. VARA has been established at a pivotal moment in response to the expansion of the Emirate’s incredibly sophisticated and modern legal framework regulating virtual asset activities. As the first niche regulator for the VA sector globally, VARA’s Metaverse HQ also makes the UAE the first jurisdiction to enter this platform, reflecting our leadership’s aspiration to facilitate a borderless new market enabling sustainable economic freedom.

“VARA’s acquiring land in the Sandbox is symbolic of our belief in this sector, and the onus is on us as government to be the bridge that allows investors and consumers to safely adopt, and collaboratively scale the economy. In addition to yielding direct economic benefit and GDP acceleration for Dubai, the VARA sees this as the first step towards shared learning and expertise development across global regulators, so that the international community can benefit from a virtual economy that has been allowed to scale safely and sustainably.”