Dubai new guidelines bar issuance of anonymous crypto assets

(Image source: Shutterstock)

Regulators in Dubai have issued a new set of guidelines on virtual asset service providers, setting licensing requirements for crypto asset companies and barring the issuance of anonymous crypto assets.

According to the guidelines, announced on February 7, any companies looking to conduct crypto businesses in the emirate must obtain a licence before they begin operation. 

The new rules define anonymous crypto assets as a type of asset that prevents the tracing of transactions or record of ownership. Issuance of anonymous crypto assets, such as Zcash (ZEC) and Monero (XMR), which maintain the integrity of transactions while keeping senders and receivers and transaction volumes private, will be prohibited.

Prior to Dubai, some other countries including the European Union (EU) and Japan have banned issuance of anonymous crypto assets already.

Dubai is one of the seven emirates that make up the United Arab Emirates (UAE), which, in 2022, set its goal to increase the number of blockchain companies by five times over the next five years.

Dubai already has more than 1,000 companies in the metaverse and blockchain fields, contributing US$500 million to the national economy. Its government intends to promote innovation and economic benefits in the metaverse area and human resource development, and aims to rank among the top 10 metaverse economies in the world.