Dubai’s VARA to Introduce New Rules to Disclose Large Crypto Holders

The anonymity of large cryptocurrency holders is at stake as Dubai’s Virtual Assets Regulatory Authority (VARA) plans to introduce new rules. The regulations want to disclose the names and identities of large holders. 

There has been much growth in Dubai’s virtual asset market. Hence, if someone holds large sums of cryptocurrencies in Dubai, the authorities might soon reveal their identities. According to VARA’s chief executive, Matthew White, these developments are necessary for consumer protection. 

Many consider this as UAE’s long-term plan to become a global hub for the crypto sector. Also, this anonymity might help investors to learn more about products. Generally, product creators do not own most tokens, but venture capitalists and third parties do. 

Who Will Disclose the Identities of Crypto Holders? 

The crypto issuers and service providers have to disclose the names of their major crypto holders (“whales”). Here, VARA is planning to bring in new rules for such crypto issuers and service providers. 

In this case, they have to put up the names of the major cryptocurrency holders on their platform, especially when the holder is a creator or an institution.  

Why Identity Disclosure? 

White went on to state that VARA might not necessarily demand the names of specific people. This is because, he explains, many crypto holders use pseudonyms when they perform transactions. Also, transactions only show wallet addresses and not the real name of the owner. 

Moreover, VARA’s chief executive also believes that the transparent and permanent nature of the blockchain makes it possible to disclose the names of big crypto holders. Furthermore, VARA will also ensure that investors understand a “clear description of risks.” 

White further stated that VARA is planning to implement the new requirements in Q1 of the new financial year. Earlier, VARA issued a public warning against promoting meme coins. Also, they warned investors about the various risks of these tokens.