Dubai’s digital assets regulator, the Virtual Assets Regulatory Authority (VARA), has founded its metaverse headquarters in The Sandbox virtual world. Making its run in the Metaverse, VARA aims to make itself “accessible to its industry in their environment.”. As well as further “facilitate engagement between virtual asset service providers, industry influencers, and global regulators.”
Why Dubai? A Metaverse HQ
In remarks following the announcement, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai, expressed his eagerness for “Modern innovations.”. Thus allowing the further reach of its services “without constraints or borders.”. In addition, the Dubai regulator said setting up its “MetaHQ” office could help reach “younger licensees” entering the virtual world.
Furthermore, Sheikh Hamdan added that VARA created a decentralized regulatory model that allows stakeholders to communicate and solve problems by installing the metaverse HQ.
VARA Breaks Ground
VARA hasn’t been the only company that announced they would be opening offices in the metaverse this year. However, VARA is one of the first regulators to do so. On Tuesday, the United States Securities and Exchange Commission said it would expand its division in charge of crypto enforcement by 20 people to be “better equipped to police wrongdoing in the crypto markets” but has not signaled a similar move into the metaverse.
Moreover, Director-General Helal Saeed Almarri commented on Dubai’s views regarding virtual assets as “the driver of the future global economy.”. Almarri also commented on VARA as the “first niche regulator for the VA sector globally.”. In his remarks, Almarri thinks that their move might “facilitate a borderless new market enabling sustainable economic freedom.” surrounding Dubai.
Despite VARA’s campaign to the metaverse, Dubai remains on the index of nations holding the strictest cryptocurrency policies. As a result, no crypto service provider can work in the country without the VARA’s approval. Failure to do so can even result in the suspension or cancellation of the permit. As VARA pushes into the metaverse, physical regulations might prevent work in the digital realm.