Dubai Virtual Asset Regulatory Authority buys land in The Sandbox

Dubai is known for its crypto-friendly behavior, but the recent step by the government has brought the country into the headlines. As part of its intentions to establish a metaverse headquarters, the Dubai Virtual Asset Regulatory Authority (VARA) has bought land in the Animoca Brands’ metaverse, The Sandbox (SAND).

VARA said the metaverse entry was aimed at encouraging “collaborative engagement” between virtual asset service providers, international regulatory bodies, and industry leaders, according to a statement by Emirates news agency WAM. Furthermore, the Dubai regulator stated that opening a “MetaHQ” office will help it target “younger licensees” who are interested in entering the virtual world. The Prime minister and ruler of the United Arab Emirates, Sheikh Mohammed bin Rashid Al Maktoum commented on the government’s move and stated:

“By expanding VARA’s resources to a borderless audience through the Metaverse, Dubai is creating a prototype Decentralised Regulator Model, inviting international thought leaders — global authorities, governance custodians and industry shapers — to participate, exchange knowledge and problem-solve collectively so that we enable the dynamic virtual assets sector to build economic resilience, accelerate social inclusion and address environmental sustainability.”

Dubai is on the way to bringing clear set of crypto regulations

Sheikh Al Maktoum formed VARA and issued a bill setting a legal framework for crypto in the Emirate of Dubai less than two months ago, signaling a shift toward the metaverse. Citizens of Dubai will be required to register with VARA before participating in crypto-related activities under the new regulation. Violations may result in penalties or the suspension or revocation of business permits.

VARA is one of the first authorities to do so, despite the fact that numerous corporations declared they would be opening offices in the metaverse following Facebook’s rebranding to Meta in October 2021. As TheCoinRise reported, the US SEC announced on Tuesday that it would increase its crypto enforcement branch by 20 people in order to be better equipped to monitor misbehavior in the crypto markets, but no such move into the metaverse has been announced.