Dubai is expected to introduce new rules requiring crypto businesses to disclose the names of large asset holders to protect consumers in the city's growing virtual market.
Plans to Disclose Large Holders' Names
The Virtual Assets Regulatory Authority (VARA) plans to require licensed crypto issuers and service providers to disclose the names of large crypto holders, especially when most tokens are controlled by a creator or institutional entity. This move aims to help investors better understand the products they are acquiring, as many tokens are controlled by third parties like venture capitalists.
Position of VARA's Head
VARA's head, Matthew White, emphasized that the authority won't necessarily require specific individuals to be named, as many cryptocurrency holders use pseudonyms, and transactions are tied to wallet addresses rather than real names. However, given blockchain's transparency and permanence, disclosing big holders is feasible. Additionally, the regulator is considering ensuring investors get a 'clear description of risks.' Although the verification process was not fully disclosed, these new requirements are part of VARA's plans for Q1, with most already underway.
Context and Background
These new rules follow a public warning from VARA about meme coin promotions. Crypto.news previously reported that the regulator cautioned investors about risks associated with these tokens, including price manipulation, liquidity problems, and potential fraud, noting they often 'lack intrinsic value' and are driven by social media trends and misleading promotional tactics.
VARA's new measures aim to enhance transparency in the crypto market and protect investors from hidden risks, reaffirming Dubai's active stance in strengthening cryptocurrency asset regulation.
