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According to the specific guidelines and countermeasures published on February 7, the Dubai Virtual Assets and Regulatory Authority (VARA) has no longer allowed to sell Zcash (ZEC) and Monero (XMR) and encrypted property with personal privacy as the main content in the region.

VARA indicates that:

"The secret name enhanced cryptocurrency avoids tracking the sale or use right records according to the public ledger of the distributed system, while the virtual asset service provider [VASP] has no mitigation technology or system to track or identify the use right."

Matt Hussey, a member of the encryption community, said that Dubai's ban on personal privacy coins "to some extent damaged" its friendly encryption regulatory environment.

Before the implementation of the ban in Dubai, the governments of Japan and other countries also implemented similar measures in 2019. At that time, personal privacy coins were particularly popular among people with blackmail virus.

In addition, Firecoin will delist seven private coin stocks in 2022 to maintain compliance management with regulatory agencies.

Dubai issues VASP encryption policies and regulations

In addition, VARA of Dubai has also issued some policies and regulations to specifically guide the operation of encryption enterprises in the country.

According to the new regulations, all encryption enterprises that want to operate in this place must obtain a license before they can operate. The government indicated that all cryptocurrency entity lines with an investment of US $250 million or more must also apply for registration at VARA.

In addition, VARA indicated that those who violate its sales market code of conduct will be punished by up to 20 million dirhams (5.4 million US dollars), while the organization may face up to 50 million dirhams.

The supervision and authorization costs of VARA vary from 40000 dirhams (US $11000) to 200000 dirhams (US $55000).

The new regulations only apply to VASP operating in Dubai. The encryption companies in the Dubai Financial Center (DIFC) free zone will not be affected because they are working under different types of regulators.

However, the regulatory authorities stressed that all investors, including participants without VARA licenses, must comply with marketing promotion, marketing and advertising policies and regulations.

VARA indicated that it was ready to promote Dubai marketing as a "regional international center" of virtual assets. The regulator added that it expected to raise awareness and promote industrial innovation.