Dubai to Require Crypto Holders’ Disclosure in New Regulation

Dubai’s Virtual Assets Regulatory Authority (VARA) is set to enforce new rules mandating crypto businesses to reveal the identities of large asset holders. This push aims to enhance consumer protection in the expanding virtual asset landscape.

The regulation specifically targets “whales,” or major holders, particularly in cases where a majority of tokens are owned by a single entity or institution. VARA’s Matthew White explained that this initiative will assist investors in understanding the products they are investing in, as many tokens are under the control of third parties, such as venture capitalists.

However, it’s important to note that VARA may not require the disclosure of specific identities since many crypto investors use pseudonyms, and transactions are linked to wallet addresses instead of real names.

White emphasized the transparency of blockchain technology, suggesting that identifying significant holders is feasible. Furthermore, VARA is committed to ensuring investors receive clear information regarding associated risks. While the complete verification process remains unspecified, these requirements are expected to be implemented in the first quarter of the year, with many initiatives already underway.

This regulatory move follows a warning issued by VARA about the risks of meme coin promotions. The agency cautioned investors regarding potential issues with these tokens, such as price manipulation and fraud, stating they often lack intrinsic value and are fueled by social media trends.

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