VARA License: The Dubai Virtual Assets Regulatory Authority (VARA) has established moderate and transparent compliance regulations for Virtual Asset Service Providers (VASPs) under Dubai VA Law (Law No. 4 of 2022). As of now, 13 VASPs have obtained licenses, and another 8 are in the application process.
Disclosure Requirements: In terms of record-keeping and compliance documentation, the three main regulatory disclosure requirements for the VARA license include daily reconciliation of client assets, submission of monthly, quarterly, and annual reports to VARA, and conducting an annual audit.
Asset Protection: The protection of client assets is critical, and they must be segregated into separate wallets. Assets should be held at a 1:1 ratio, ensuring that clients receive all entitlements, such as “airdrops” or “staking rewards.” Keys must be stored in multiple physical locations, and backups of keys and seed phrases should be stored in separate locations.