Dubai Prohibits Privacy Coins Like Zcash and Monero Under New Crypto Rules
The jurisdiction in the United Arab Emirates (UAE) published its long-awaited crypto regulations, which sets licensing and authorization requirements for virtual asset companies and issuers looking to operate in Dubai.
The new rules define anonymity-enhancing crypto as "a type of Virtual Asset which prevents the tracing of transactions or record of ownership through distributed public ledgers and for which the [Virtual Asset Service Provider] has no mitigating technologies or mechanisms to allow traceability or identification of ownership."
"Any obfuscation of fund flows poses a challenge to detecting illicit activities, so it is unsurprising that regulators react strongly to these kinds of asset classes and mechanisms,” said Angela Ang, senior policy advisor at blockchain intelligence firm TRM Labs.
Crypto activities in Dubai are supervised by its Virtual Assets Regulatory Authority (VARA), set up last year. The emirate has been working to attract attract crypto and blockchain companies to set up shop in Dubai.
Update (Feb. 8, 10:33 UTC): Adds comment from Angela Ang.