Dubai Unveils New Crypto Rules: "Whales" to be Exposed

Dubai's Virtual Assets Regulatory Authority (VARA) is set to introduce new rules that aim to disclose the identities of large cryptocurrency holders in the region. This move comes as Dubai's virtual asset market continues to grow, and authorities seek to enhance consumer protection.

Under the new regulations, crypto issuers and service providers will be required to disclose the names of their major crypto holders, often referred to as "whales." This includes creators and institutions that hold significant amounts of cryptocurrencies. The new rules are expected to be implemented in the first quarter of the new financial year.

VARA's chief executive, Matthew White, has stated that the primary goal of these new requirements is to provide investors with a clear understanding of the risks associated with cryptocurrencies. While the regulations may not necessarily demand the names of specific individuals, the transparent and permanent nature of the blockchain makes it possible to disclose the identities of big crypto holders.

White also mentioned that many crypto holders use pseudonyms when performing transactions, and transactions only show wallet addresses, not the real names of the owners. However, the new rules aim to ensure that investors have access to a clear description of risks, which may include the identities of large crypto holders.

Earlier, VARA had issued a public warning against promoting meme coins and alerted investors about the various risks associated with these tokens. The introduction of new rules to disclose large crypto holders is part of the UAE's long-term plan to become a global hub for the crypto sector, providing investors with more information about products and their creators.