While Dubai is set to become one of the largest crypto hubs, the newly-published regulatory framework sheds light on how the region plans to deal with privacy cryptocurrencies like monero (XMR) or zcash (ZEC).
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According to a rulebook published by the Virtual Asset Regulatory Authority (VARA), Dubai prohibits not only the issuance, but also "any other activity" related to "anonymity-enhanced cryptocurrencies." The VATA defines such currencies as assets which can't be traced through distributed public ledgers.
Although the document doesn't mention any existing privacy-focused altcoins, the document outlines that cryptocurrencies that make it impossible to identify their ownership won't be allowed in the region, neither.
Dubai set up VARA in March 2022 to ensure "maximum transparency and security" for cryptocurrency investors. The regulator handles the UAE's crypto licensing regime and monitor trades to prevent price gauging.
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