DUBAI’s regulator for cryptocurrency and other digital assets has announced it is setting up headquarters in The Sandbox.
In a world-first, a government agency will have a permanent presence inside the metaverse.
As more and more brands seek to join digital platforms, Dubai has opened the door for world powers to do the same.
The Virtual Assets Regulatory Authority (VARA) confirmed this week it will establish a headquarters in The Sandbox.
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VARA was launched in March to help create an advanced legal framework for the rapidly developing digital sphere.
It aims to protect investors in assets such as cryptocurrencies and NFTs as well as to help facilitate responsible growth.
The authority decided that entering the metaverse itself would help it to better keep an eye on developments, and collaborate with users of digital platforms and assets.
VARA said that its presence in the metaverse would “serve as its primary channel to engage users across the globe to initiate applications, enable younger licensees to enter the metaverse, openly share knowledge and experiences with consumers and peer regulators to raise awareness, enable safe adoption, and drive global interoperability”.
The location of the HQ in The Sandbox is yet to be revealed.
The Crown Prince of Dubai, Sheikh Hamdan bin Mohammed Al Maktoum described the development as an important step in taking a leading role in shaping the future of Web 3.0.
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“Dubai maintains a leading position at the forefront of technological transformation,” he said.
“We have exceeded the role of an early adopter to become an innovator and participant in shaping the future of this technology.”
Dubai hopes that embracing digital developments will help boost the country’s economy and create new investment opportunities.
Eager to exploit the opportunities of virtual reality, earlier this year the country hosted a world economic summit in the metaverse.
The Investopia Investment Summit was the first world-wide economic forum to take place in the digital space.
However, despite its metaverse push, the emirate has taken a tough stance regulating the space.
Dubai has strict rules for those operating in the digital sphere.
Cryptocurrency service providers can only function in Dubai with a licence from VARA and must also have a physical business presence in the country.
