- Dubai introduces crypto whale disclosure rules to boost market transparency and reduce manipulation.
- VARA strengthens market stability by requiring asset issuers and crypto service providers to disclose reserves.
- Dubai imposes strict regulations on memecoins, with penalties for non-compliance up to $135,000.
Dubai is tightening its crypto regulations, introducing new measures to increase transparency and combat market manipulation.
The move aimed at exposing the identities of major token holders, known as crypto whales, could set an example for other jurisdictions considering regulating the growing digital asset market.
Dubai Aims for Market Clarity & Reduced Manipulation Risks
Matthew White, CEO of the Virtual Assets Regulatory Authority (VARA), emphasized that these regulations improve market clarity and reduce manipulation risks.
In an interview, White revealed that VARA plans to introduce rules requiring Dubai crypto businesses to disclose major token holders’ ownership structures. These new regulations will focus on virtual asset service providers operating in the region and mandate detailed reporting of the ownership stakes of large holders.
Transparency Push: Exposing Whale Identities to Curb Manipulation
By implementing these rules, Dubai aims to increase market transparency and minimize the risk of manipulation, particularly in cases where a single entity or creator holds a portion of a token’s supply.
Despite the pseudonymous nature of crypto transactions, which often record wallet addresses instead of real identities, White believes blockchain technology will play a major role in tracking large asset movements. This technology could help regulators monitor the market and detect possible manipulation, even without revealing the true identities of the holders.
Related: Dubai’s VARA: Striking the Right Balance in Crypto Regulation
In addition to the crypto whale disclosure rules, VARA is working on other measures to strengthen market stability. These include requiring crypto asset issuers and service providers to disclose reserve compositions and undergo independent audits.
By promoting transparency in these areas, Dubai aims to prevent sudden market crashes and build investor confidence. Moreover, White confirmed that implementing these measures is a priority for VARA.
VARA’s Caution on Memecoins and Market Risks
VARA has also warned about the volatility and market control risks associated with memecoins.
Often driven by social media hype, these tokens lack real value and present financial risks. The regulatory body advised investors to be mindful of unreal returns, which could lead to fraudulent schemes.
Related: Dubai’s Virtual Assets Regulator Cracks Down on MKAN Coin for Illegal
However, to address these risks, Dubai’s regulations now require memecoins issued in the emirate to comply with strict marketing standards. Non-compliant platforms could face penalties of up to $135,000. VARA also retains the authority to block non-compliant platforms without notice.
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